Inflation holds at 12.14 per cent

Inflation was reported at 12.14 per cent for the week ended September 13, at the same level recorded a week earlier.

While food articles rose by 0.2 per cent, chemical & chemical products were up by 0.1 per cent, and fruit & vegetables by 0.6 per cent. Manufacturing products, however, were down by 0.5 per cent, while fuel, power and light remained unchanged.

Economists see inflation stabilising around this level before it starts to fall. However, they expect the RBI to raise interest rates by 25-50 basis point in its October review.

Earlier, a Reuters poll on Wednesday estimated the annual inflation rate to head upwards for a second consecutive week with the rise mainly seen in food and vegetables.

The wholesale price index was forecast to have risen 12.23 per cent in the 12 months to September 13, above the previous week’s rise of 12.14 per cent, according to the median estimate.

The government had earlier said inflation would hit 13 per cent and thereafter start moderating from December, before settling at 8.0-9.0 percent by the end of the fiscal year in March