Inflation rises to 9.89% in February
Inflation rose to 9.89% in February, driven by higher food prices. Top 5 picks | Mid-term picks | Top gainers, losers & recommendations from analysts
By Agencies |
NEW DELHI: Driven by increasing food prices, India's annual rate of inflation, based on the wholesale price index, rose to 9.89 percent in February from 8.56 percent in the previous month, official data revealed Monday. (Watch)
The latest data released by the commerce ministry showed food prices jumped 17.79 percent last month, while those for primary articles rose 15.54 percent. Manufactured products were up 7.42 percent.
Prime Minister Manmohan Singh on March 5 admitted in parliament that price rise was a cause of worry and assured the house that all possible steps were being taken to contain it.
At its January policy review, the central bank raised its WPI inflation projection for end-March 2010 to 8.5 percent.
The Reserve Bank of India is widely expected to raise both its benchmark lending and borrowing rates by at least 25 bps each to 5.00 per cent and 3.50 per cent, respectively.
Fuelled by a slew of stimulus measures, GDP grew 7.9 per cent in the second quarter of the current fiscal. However, due to the draughts, the growth dropped to 6 per cent in the third quarter on back of a 2.8 per cent negative growth in the farm output.
The government has also completed its market borrowings of $9 billion for the current fiscal.
The latest data released by the commerce ministry showed food prices jumped 17.79 percent last month, while those for primary articles rose 15.54 percent. Manufactured products were up 7.42 percent.
Prime Minister Manmohan Singh on March 5 admitted in parliament that price rise was a cause of worry and assured the house that all possible steps were being taken to contain it.
At its January policy review, the central bank raised its WPI inflation projection for end-March 2010 to 8.5 percent.
The Reserve Bank of India is widely expected to raise both its benchmark lending and borrowing rates by at least 25 bps each to 5.00 per cent and 3.50 per cent, respectively.
Fuelled by a slew of stimulus measures, GDP grew 7.9 per cent in the second quarter of the current fiscal. However, due to the draughts, the growth dropped to 6 per cent in the third quarter on back of a 2.8 per cent negative growth in the farm output.
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The government has also completed its market borrowings of $9 billion for the current fiscal.
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