India's inflation in August at 9.78 percent

India's inflation in August at 9.78 percentNew Delhi, Sep 14: India's inflation in August inched closer to double digits to 9.78 percent, giving no respite to policymakers and the common man and raising the possibility of another interest rate hike by the Reserve Bank of India (RBI).

Based on the wholesale price index, the annual rate of inflation in August stood at 9.78 percent, compared to 9.22 percent for the previous month and 8.87 percent in August 2010, according to data made available by the ministry of commerce and industry ministry.

The figures for June were also revised upwards to 9.51 percent from the earlier projected 9.44 percent.

Analysts largely expect the RBI to hike key interest rates by at least another 25 basis points when it takes up a review of the monetary policy Friday. Although the central bank has hiked rates 11 times since January 2010, inflation still remains stubbornly high.

The RBI had, in its last review, said that inflation would remain on the higher side till the end of 2011.

The primary articles index rose to 12.58 percent in the month under review, while that for fuel and power went up to 12.84 percent.

The index of manufactured products saw a rise of 7.79 percent, while food articles became dearer by 9.62 percent. (IANS)