India's annual inflation based on wholesale prices
continued to remain at elevated levels , though moderating slightly to 9.11 per cent in November, official data released on Wednesday showed.
Expectations of the
Reserve Bank of India (RBI) lowering interest rates could also be dashed as the
high inflation will prompt the central bank to stick to the tight monetary policy if not raise rates further. The RBI will conduct its mid-quarter review of monetary policy on Friday.
Inflation will moderate: Pranab |
Prices will coll down by March 2012: RBI
Inflation has been sticky and elevated for more than two years. November is the 12th straight month in which annual inflation has been over 9 per cent.
The
weakness in the rupee is another danger in the short-term. With the Indian currency continuing to slide and hitting new lows consistently, the cost of imports, especially those of petroleum products, could further add to higher inflationary pressures.
PERSPECTIVE: Why is the rupee falling now? For November, the primary articles index went up by 8.53 per cent, while that for fuel and power rose 15.48 per cent, according to data released by ministry of commerce and industry.
The index of manufactured products, which has the highest weightage on the wholesale price index, also rose by 7.7 per cent in the month under review. The food articles index registered an increase of 8.54 per cent.
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