NEW DELHI: Cost of living, already at a 13-year peak, is rising again, ruling out any chances that the central bank may soften monetary policy to boost slackening industrial output.
Annual inflation, based on wholesale price index (WPI), climbed further to 11.89% in the week ended June 28, outpacing the previous week’s 11.63% and 4.42% during the corresponding week of the previous year.
The government also sharply revised the inflation figure for the week ended May 3 by 0.9% to 8.73% as compared to the provisional data of 7.83%. This suggests that inflation may be currently close to 13%, forcing RBI to further tighten monetary policy at its review later this month, economists said. The unabated rise in the cost of living is now proving to be a major nightmare for the ruling coalition, which is set to face assembly polls in six states later this year and general elections next year.
The latest spurt in inflation is fanned by costlier food items and manufactured items as the second-round effect of price increase in auto fuel percolated into the economy. Food items like fruits and vegetables, cooking oil, textiles, fertilisers, pesticides and telephone instruments became costlier during the week.
Annual inflation, based on wholesale price index (WPI), climbed further to 11.89% in the week ended June 28, outpacing the previous week’s 11.63% and 4.42% during the corresponding week of the previous year.
The government also sharply revised the inflation figure for the week ended May 3 by 0.9% to 8.73% as compared to the provisional data of 7.83%. This suggests that inflation may be currently close to 13%, forcing RBI to further tighten monetary policy at its review later this month, economists said. The unabated rise in the cost of living is now proving to be a major nightmare for the ruling coalition, which is set to face assembly polls in six states later this year and general elections next year.
The latest spurt in inflation is fanned by costlier food items and manufactured items as the second-round effect of price increase in auto fuel percolated into the economy. Food items like fruits and vegetables, cooking oil, textiles, fertilisers, pesticides and telephone instruments became costlier during the week.
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