Inflation up at 0.92%; prices of food items soften

Inflation rose to 0.92 per cent during the week ended October 3 from 0.70 per cent a week ago even as prices of major food items declined.

While prices of non-processed food items declined by 1.67 per cent on weekly basis, the rates of such articles were higher by 13.34 per cent compared to the same week last year.

Inflation could have been much higher but because of a high base of 11.49 per cent a year ago it is still below one per cent.

Softened food prices on weekly basis might give some relief to RBI to hold policy rates in its October 27 monetary review.

Most analysts including Prime Minister's Economic Advisory Council chairman C Rangarajan expect inflation to breach RBI's projection of 5 per cent by this fiscal end.