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POLL - Inflation seen at 1.64 pct on Oct 24

Wed Nov 4, 2009 6:51pm IST
 
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By Boby Michael

MUMBAI (Reuters) - India's annual inflation rate is forecast to have edged up to 1.64 percent as at Oct. 24 from 1.51 percent a week earlier, with food prices expected to have risen marginally, a Reuters poll of 20 analysts showed on Wednesday.

Analysts said higher fuel and manufactured goods prices could contribute to WPI inflation in the weeks ahead.

"We expect the prices of fuel and manufactured goods to push up the rate of inflation in the coming months, while food prices should see a seasonal moderation in November and December," said Sonal Varma, an economist at Nomura.

The food articles index in WPI rose an annual 12.85 percent as on Oct. 17, slower than 13.34 percent in the previous week.

The monthly consumer price inflation was at 11.64 percent for September little changed from 11.72 percent a month earlier, government data showed last week.

The central bank has said the divergence in CPI and WPI rates

was mainly due to a sharp rise in food prices, which have higher

weightage in CPI.  Continued...

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