Inflation rises to 9.89 per cent in February

New Delhi, Mar 15 (PTI) Wholesale price-based inflation
rose to 9.89 per cent in India during February from 8.56 per
cent in the previous month due to increase in prices of
certain food items such as sugar and the hike in excise duty
on fuel announced last month.

Sugar prices rose by 55.47 per cent in February
year-on-year while potatoes turned costlier by 30 per cent
and pulses by 35.58 per cent.
Among fuel items, petrol prices rose by 11.73 per cent
and high-speed diesel around 9 per cent.
Overall the fuel index for the month rose by 1.5 per
cent. Non-coking coal rose 12 per cent, coking coal 9 per cent
and high-speed diesel and petrol by 2 per cent each.
Inflation is expected to rise further following the hike
in excise duty on petrol and diesel in the Budget.
To tame inflation, the Reserve Bank of India, in its
quarterly monetary review, had asked banks to keep aside more
cash with them. It hiked the cash reserve ratio--amount banks
have to park with the apex bank--by 75 basis points to 5.75
per cent, which would suck out Rs 36,000 crore from the
system.
The RBI's projection of inflation touching 8.5 per cent
by this fiscal-end has already been breached last month. PTI
BSP
KAB


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