Wholesale prices rose by 3.07% during the week ended October 13, but the five-year-low inflation is unlikely to prompt the central bank to reduce interest rates in its monetary policy review next week. Inflation based on the WPI stood unchanged during the period under review compared to the previous week despite rise in prices of food article and some manufactured products, according to government data.
During the week, food items like fruits and vegetables, pulses, eggs meat and fish became expensive. At the same time, some manufactured food articles like flour, maida turned cheaper. The wholesale price-based index stood at 5.46 % in the corresponding week a year ago. The price index has remained below the Reserve Bank?s forecast of 5% for this fiscal during the past few weeks, but analysts said the central bank would not cut the benchmark interest rates at the policy review on October 30.