Wholesale price index inflation for the month of August has come in just short of double digits at 9.78 per cent as against 9.22 per cent in July. The figure is even higher than economist estimated at 9.65 per cent as a CNBC poll and might result in the Reserve Bank of India hiking rates for the twelfth time in a row despite growing concerns of the higher interest rates hampering India's economic growth rate.
The central bank will announce its mid-quarter policy review this Friday and some analysts expected the governor to pause his incessant rate hikes. However, given the alarming rate at which inflation is rising despite a slew measures taken the RBI might maintain its hawkish stance.
According to data released by the government fuel group inflation in August stood at 12.84 per cent as against 12.04 per cent in July. Primary Articles Inflation stood at 12.58% versus 11.3% (MoM) while manufacturing products inflation was at 7.79% versus 7.49% (MoM). The food articles index came in at 9.62%.
According to moneycontrol.com analysts at Goldman Sachs are expecting the RBI to skip its tightening cycle this time around.
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