The Reserve bank of India has revised its wholesale price index projections from 5 per cent to 6 per cent by March next year. RBI Deputy Governor, K C Chakrabarty, speaking in the sidelines of a function, said: "We have always said by March it should be 5%, it may become 6%."

Currently, the country has been going below zero inflation-rate for the last few months. However, there is no respite for common man as grocery items and prices of essential commodities are soaring that could prove politically fatal for the incumbent government going to face assembly elections in some states.

Chakrabarty said that food inflation is also liked to the minimum support price the government offer to farmers in addition to gap between demand and supply. He added: "If we increase the procurement prices every year by 10% or more than 10%, we cannot say food inflation will be less than 10%."

Rise in inflation may pave the way for the central bank to shun accommodative monetary policy by revising key interest rate for healthy economic growth. Meanwhile, the recent projections by RBI increased 10-year bond yield by 2 basic points to 7.08 per cent.

Meanwhile, many analysts have forecast different projections of WPI; with some expecting it to rise 6 per cent, while Kotak Mahindra Bank hopes it to touch at 8 per cent by the end of March.