The annual inflation rate took a slight dip to 11.44 per cent for the week ended October 4. It was 11.80 per cent for the week ended September 27. The dip has been attributed to cooling of commodity prices.
The wholesale price index is forecast to have risen 11.86 per cent in the 12 months to October 4, having posted a rise of 11.80 percent in the previous week.
In early August, the inflation rate was 12.91 per cent, the highest reading since annual numbers in the current data series became available in April 1995. It jumped into double digits after a hike in government-controlled retail fuel prices in June.
Analysts said inflation has probably already peaked, and may now embark on a downtrend, but the base effect was likely to play a key role in the next few weeks.
"Shortages of primary articles at the start of the festival season will also be seen and the import of non-oil articles will play some role," said Rupa Rege Nitsure, chief economist at Bank of Baroda.
However, three of the 10 economists saw inflation slowing further from the previous week and continuing to ease.
"Everything will see a fair bit of decline. There will be some fall in the manufacturing, a small bit in the primary articles as well. The fuel index is also likely to go down," said Saugata Bhattacharya, economist with Axis Bank.
In early August, the inflation rate was 12.91 per cent, the highest reading since annual numbers in the current data series became available in April 1995. It jumped into double digits after a hike in government-controlled retail fuel prices in June.
Analysts said inflation has probably already peaked, and may now embark on a downtrend, but the base effect was likely to play a key role in the next few weeks.
"Shortages of primary articles at the start of the festival season will also be seen and the import of non-oil articles will play some role," said Rupa Rege Nitsure, chief economist at Bank of Baroda.
However, three of the 10 economists saw inflation slowing further from the previous week and continuing to ease.
"Everything will see a fair bit of decline. There will be some fall in the manufacturing, a small bit in the primary articles as well. The fuel index is also likely to go down," said Saugata Bhattacharya, economist with Axis Bank.
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