In case of onions, inflation skyrocketed to 127.04 per cent, while for the eggs, meat and fish segment the rate of price rise was 5.76 per cent.
Onion prices, however, continued to rule high with 79.78 per cent increase in September.
This could be the reason why Prime Minister Narendra Modi mentioned tomato, onion, and potato as his government's 'TOP' priority, in an election rally on February 5 in poll-bound Karnataka.
Disagreeing with Reserve Bank's projection on the price situation, former RBI Governor and PM's Economic Advisory Council chairman C Rangarajan said WPI and CPI may not be as high as being projected by the central bank.
'We will likely be buffeted by tailwinds from the global economy, geopolitical shifts and robust domestic demand.'
Though the ministry is considering 2017-18 as the new base year, no decision has been taken as the committees of experts are awaiting some more data before finalising their opinion.
This is the second straight month of decline in wholesale price based inflation.
The RBI's projection for WPI inflation for this fiscal is 5.5 per cent.
People can afford to buy more food. So, the demand is up and so are prices.
Overall slowdown in the economy and growing volumes of unbranded generic medicines in the domestic market are behind poor sales.
Debt returns are always negative for investors in India, unless they are willing to take huge risk
India's annual rate of inflation, based on its monthly Wholesale Price Index, climbed to 6.01 per cent for the month of May 2014, as against 5.20 per cent for May and 4.58 per cent during the corresponding month of the previous year, which has set off alarm bells.
Vegetable prices which had witnessed a 21.16 per cent contraction in June, shot up by 21.95 per cent in July.
A comprehensive technical framework needed, from which a more convincing policy could be demonstrated
RBI has cut policy rate thrice during 2015.
Top losers in the Sensex pack include Bharti Airtel, Infosys, Asian Paints, RIL, Coal India, HDFC Bank, HDFC, TCS, ONGC and M&M, falling up to 3.09 per cent.
The food-price segment in the WPI has been growing at 8.3 per cent, much higher than the rise in the index for manufactured articles. In fact, segments like minerals and fuel have witnessed a decline in the WPI and have pulled the inflation down. The rise in food prices affects the common man more than the increase in prices of any other item.
Last week, the Consumer Price Index-based inflation for the month had contracted to 4.4 per cent.
The rupee has depreciated 2.35 per cent in the past three months and one per cent in the past month, despite strong capital flows and falling oil prices.
There is little to suggest inflation levels will come down since you hardly see the same levels of seasonality in prices that were there earlier.
D&N cites positive changes in momentum in certain segments of economy, but says some areas of concern remain
Chief economic adviser to the finance ministry Arvind Virmani on Wednesday said the retail price-based inflation, which is ruling above the wholesale price index, will come down with a lag but would not fall as much as the rate of rise in wholesale prices is falling.
Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan may have found the Reserve Bank of India (RBI)'s inflation projections on the higher side, but independent experts agree with the central bank and expect both wholesale and retail prices to remain high.
Chief Economic Adviser K V Subramanian on Friday said there is an "upside potential" in the estimates about the economy during the current financial year amid a faster-than-expected recovery. He said the final print could be better than GDP estimates given by various institutions, including the Reserve Bank of India, which projected contraction of 9.5 per cent during 2020-21. During the second quarter, India's economy recovered faster than expected as a pick-up in manufacturing helped GDP clock a lower contraction of 7.5 per cent and held out hopes for further improvement on consumer demand bouncing back.
The increase by more than three per cent is largely due to jump in the rate of inflation in the case of WPI for fuel, power, light and lubricants
Stock markets will remain closed on Tuesday
The Central bank primarily factors Consumer Price Index while deciding on policy rate.
In February last year, it was (-)2.17 per cent.
Reiterating his earlier stance, BJP's Rajya Sabha member Subramanian Swamy has written a letter to Prime Minister Narendra Modi, asking him to sack RBI Governor Raghuram Rajan.
'If you see the composition of items which are causing this spike in prices, most of them have little to do with the kharif harvest, except for pulses and vegetables to some extent.' 'I don't know on what basis the government is claiming that food prices will moderate in the weeks to come.'
The 30-share Sensex ended up 257 points or 1.2% at 21,289 and the 50-share Nifty ended up 79 points or 1.3% at 6,321.
Changes the base year and included more sectors.
Sensex may remain under pressure this week due to weak global factors.
Former finance minister P Chidambaram on Friday rejected Finance Minister Arun Jaitley's contention in Lok Sabha that UPA government left behind double digit inflation.
RBI watchers are going to be on tenterhooks for the next 3 weeks.
India's wholesale prices declined at a faster-than-expected annual rate of 2.33 per cent in March.
India's gross domestic product growth, which had fallen under 5 per cent, is expected to be between 5.4 per cent and 5.9 per cent this fiscal.
The chief statistician feels there should be a rebound after companies integrate and adopt the GST system
RBI Governor Raghuram Rajan on Friday said repo rate has been hiked as inflation pressures remain high.
The CPI and WPI data for December 2013 holds the key for the third-quarter monetary policy review to be announced later this month.
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