Indian inflation rises

The first monthly data released by the Government of india on 14^th Nov 2009 showed inflation more than doubled to 1.34 per cent in October compared to 0.5 per cent a month earlier as essential food items turned costlier.

Interestingly, the build-up inflation in the financial year so far was 6.13 per cent compared to 5.99 per cent in the corresponding period of the previous year.In variance with the earlier practice of a weekly release, this is the first time the government has come out with comprehensive inflation data on a monthly basis with 1993-94 as the base year.

On an annual basis, prices of potato have doubled since October last year, while onions were expensive by 37 per cent. At the same time other items like vegetable were costlier by 23 per cent, sugar by 45%. If the inflationary pressure continues then RBI likely to tighten the credit policy in early next year.