New Delhi: The wholesale price-based inflation rose to an eight-month high of 1.48 per cent in October, as manufactured products turned costlier, with experts saying that the RBI will keep interest rates on hold in its policy review next month.
The WPI inflation was at 1.32 per cent in September and zero per cent in October last year.
This is the highest level of wholesale price index-based (WPI) inflation since February, when it was at 2.26 per cent.
While food article prices softened in October, manufactured items witnessed hardening of prices, according to the data released by the Commerce and Industry Ministry.
Food inflation in October stood at 6.37 per cent, as against 8.17 per cent in the previous month.
The rate of price rise in vegetables and potato remained high at 25.23 per cent and 107.70 per cent, respectively, during the month.
Inflation in manufactured products category stood at 2.12 per cent in October, as against 1.61 per cent in September. Fuel and power basket witnessed softening to (-)10.95 per cent in October.
The retail inflation, based on consumer price index, was at a six-year high of 7.61 per cent in October, data released last week showed.
ICRA Principal Economist Aditi Nayar said core inflation spiked to 1.7 per cent in October 2020 from 1 per cent in September, and the core index has been hardening since August.
“In our view, the core inflation will continue to record a steady uptick in month-on-month terms over the next few months, with the strengthening of the economic recovery, while food prices will remain dominated by the trend displayed by vegetables. The MPC (Monetary Policy Committee) is likely to stay on hold in at least December 2020, if not in February 2021 as well,” Nayar said.