The inflation, based on wholesale price index (WPI) was at 6.1 percent in August. The sharpest increase was witnessed in case of onion prices which jumped by 323 percent year-on-year in September. The price of vegetables in general rose by 89.37 percent making life difficult for the common man.   

Fruits too were costlier by 13.54 percent year-on-year during September 2013. As per data released by the government on Monday, the food inflation stood at 18.40 percent in September over the same month in 2012. The food prices had shot up 18.18 percent in the previous month. Inflation in the LPG (liquefied petroleum gas) and petrol was at 9 percent and 9.64 percent, respectively, on annual basis.    

However, there was decline in prices of egg, meat, fish and manufactured food items like beverages and tobacco products. Overall, inflation in manufactured items showed a moderate increase of 2.03 percent during the month on annual basis.    

The Reserve Bank is scheduled to unveil its second quarter review of monetary policy on October 29 and will have to take into account the rising inflation while announcing steps to boost economic activities. 


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