New Delhi, Sept 16 (KNN) Inflation based on Wholesale Price Index (WPI) went up to 6.10 per cent in August from 5.79 per cent in July again making it almost impossible for the Reserve Bank of India (RBI) to cut interest rates, something the small and medium enterprises would be disappointed about.
 
Though, the core inflation of the manufacturing products is at only 1.90 per cent, the RBI is likely to take into account the WPI numbers along with the consumer price index.
 
Both these indices are well above the comfort level of the policy makers and the RBI.
 
Chairman of the Prime Minister’s Economic Advisory Council (PMEAC), C Rangarajan, also said that he expects RBI to keep into account inflation and the situation on Rupee while reviewing the Benchmark interest rates on September 20.
 
As the economy is going through slowdown, the annual inflation for a host of industrial products has remained low or even declined during August.

For instance, iron and semis dropped by about 8 per cent, basic metals, alloys and metal products by 2 – 2.8 per cent.

Cement and lime by 3.26 per cent and minerals by 7.21 per cent.

However, the pressure on vegetable prices kept the overall food prices high. (KNN/PC)