A sharp rise in food prices pushed the annual consumer inflation to 10.09 per cent in October, adding to the pressure for further interest rate rises despite slowing economic growth. The consumer prices had risen 9.84 percent year-on-year in September.
Food prices for consumers last month rose 12.56 percent from a year earlier, led by a 45.67 jump in vegetable prices.
The Reserve Bank of India's next policy review is scheduled in mid-December. RBI Governor Raghuram Rajan had told NDTV earlier that inflationary expectations are high and the central bank will take a tough stance to bring it down.
"Based on the anticipated growth-inflation dynamics, a further 25 basis point hike in the repo rate in second half of 2013/14 fiscal year can't be ruled out," said Aditi Nayar, an economist at ICRA, the Indian arm of rating agency Moody's.
Though the inflation data was released after the markets hours, the Sensex fell for the sixth day today, slumping 209 points. The losses were led by interest-rate sensitive stocks such as auto, banking and realty. The rupee too fell for the fifth day, ending at 63.71 to a dollar.
(With Reuters inputs)
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