New Delhi: Inflation inched up further to 9.44 per cent in June due to higher prices of fuel and manufactured items, a development which may lead to another round of rate hike by the RBI later this month. (Agencies)
Grappling with high prices situation, the Government came out with a statement saying it was working with the RBI to bring down inflation to a "comfortable level".
Inflation, as measured by Wholesale Price Index (WPI), rose from 9.06 per cent in May. The April numbers too were revised upwards to 9.74 per cent from 8.66 per cent. Headline inflation is above 9 per cent mark since December 2010.
"Government is working together with RBI to take appropriate steps to reduce inflation to more comfortable level," Finance Minister Pranab Mukherjee said.
The index for the fuel and power segment stood at 12.85 per cent year-on-year in June. This was up from 12.32 per cent in the previous month. Diesel, Kerosene and LPG prices were revised in May.
Prices of manufactured products went up by 7.43 per cent year-on-year in June from 7.27 per cent in May.
In wake of sustained inflationary pressure, experts feel the RBI will again hike rates in credit policy on July 26 by at least 25 basis points.
"While the RBI is likely to go ahead with another round of rate hike, it is important to identify the pressure points in the economy giving rise to high inflation levels," Deloitte Haskins & Sells director Anis Chakravarty.
In line with overall inflation, the weekly food index too rose to 8.31 per cent for the week ended July 2 as against 7.61 per cent in the previous week.
However, month-on-month food inflation in June was flat at 8.38 per cent.
New Delhi: Inflation inched up further to 9.44 per cent in June due to higher prices of fuel and manufactured items, a development which may lead to another round of rate hike by the RBI later this month.