Due to the rapidly rising cost of food items, inflation rates across the country have more than doubled during the month of October to 1.34%, a substantial increase from the rate of 0.5% recorded for the previous month.

Financial experts have been quick to warn that if the current rate of inflation continues, the RBI might tighten its monetary stance for the January 2010 policy review. "If the inflationary pressure develops, then authorities may take action even earlier. The RBI will have to wait and see how the price situation evolves during November-December,” Prime Minister’s Economic Advisory Council Chairman C. Rangarajan said.

Official figures released by the Government have confirmed that for the current fiscal year so far, the inflation build-up recorded was 6.13%, compared to last year's figure for the same period which stood at 5.99%.

Experts have warned that prices might go up even further in the coming times, till the market conditions stabilize.