September inflation rose to 7.9% versus 7.55%: ET Now Poll

NEW DELHI: The Wholesale Price Index (WPI) for the month of September likely rose to 7.9% versus 7.55% in August, according to an ET Now Poll. The consensus estimates of the poll range from 7.14% to 8.2%.

The primary article inflation is expected to have risen marginally to 10.1% versus 10.08%. Fuel and power inflation will also see a rise to levels of 9.06% versus 8.32%, the poll estimates.

While manufacturing products inflation is likely to come in at 6.9% versus 6.14%, core inflation may remain above 5.5%. Manufactured products inflation will be impacted by interplay of Rupee, indirect impact of high diesel prices and commodity prices.

The food inflation will remain high due to the impact of delayed rains on the kharif crop. The participants of the poll believe that food inflation may have peaked by now. Fuel inflation is expected to be high due to a hike in diesel prices and a cap on cooking gas cylinders.

Market analysts will be looking at the inflation number to gauge the possible direction of the Reserve Bank of India's (RBI) monetary policy at the end of this month.

Meanwhile, the Index of Industrial production ( IIP) for the month of August grew at a robust 2.7% beating the ET Now poll forecasts of 0.8%. According to revised estimates, the index had grown at a meagre 0.2% in July .

Growth in overall factory output, as measured by the Index of Industrial Production (IIP), was 3.4 per cent in August last year.

The manufacturing sector, which constitutes over 75 per cent of the index, grew at slow rate of 2.9 per cent in August, as against 3.9 per cent in the same month last year. The production growth in the manufacturing sector in April-August was flat, as against 6 per cent growth in the same period in 2011-12. Capital goods output contracted by 1.7 per cent in August, as against 4 per cent growth in August, 2011.