WPI Inflation rose to 6.5 per cent in September from 6.1 per cent in August. WPI inflation has surged in the last four months from 4.6 per cent in May due to rising inflation in primary articles and fuels, which have over one-third weightage in the WPI. The prices of primary articles rose over 13.5 per cent in September. Core inflation – measured by both non-food manufacturing inflation and CRISIL Core Inflation Indicator (CCII) - continued to remain weak at 2.1 per cent and 2.7 per cent, respectively in September. With inflation now out of RBI’s comfort zone for four months in a row, we expect a 25 bps repo rate hike on October 29, 2013
