CPI inflation at 9.73%; RBI may be unimpressed

Business

oi-Sunil

By Sunil Fernandes

Published: Friday, October 12, 2012, 11:20 [IST]

The Consumer Price Inflation data, one of the important data points for the Reserve Bank of India to consider in its October 30, Monetary Policy Review has come in at 9.73% for September 2012. The figure which was below 10.03 % reported for the previous month of August 2012, still remains high to give the RBI any room to cut rates.

The corresponding provisional inflation rates for rural and urban areas for September 2012 are 9.79 % and 9.72 % respectively. Inflation rates (final) for rural and urban areas for August 2012 are 9.90 % and 10.19 % respectively.

The Wholesale Price Index inflation is expected to be released on Monday and would remain another crucial data point for the RBI in determining rate cuts. Industry has been hankering for a rate cut from the RBI to propel growth rates.

However, the RBI has not obliged since April, keeping the elevated levels of inflation in mind. It is likely that the RBI may continue to keep policy rates on hold in its meeting on October 30.

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