Inflation based on the wholesale price index (WPI) moved up to 4.35% for the week ended February 9 when compared with 4.07% in the previous week on higher food prices.Inflation was 6.52% in the corresponding week last year.Prices of fruit, vegetables, condiments, spices, marine fish, imported edible oil and mustard oil increased in the week under review.The government revised the inflation data for the wek ended December 15 to 3.84% from 3.45% reported earlier.Analysts expect inflation to go up further in the coming weeks on the back of higher oil prices. The government had raised the prices of petrol and diesel by Rs 2 and Re 1 per litre, respectively, last week."The hike in oil prices will raise WPI by 20 basis points," said Arun Kaul, general manager (treasury), Punjab National Bank.Kaul also feels that Reserve Bank of India (RBI) may keep its key policy rates unchanged in the next monetary policy review in April. "As things stand now, it seems the central bank may not change its monetary policy stance any time soon," he said.RBI had kept the benchmark interest rates unchanged in its last quarterly policy review on concerns of rising fuel and food prices. "Headline inflation has remained suppressed at the current juncture, and inflation risks on account of oil prices remain incipient," the central bank had said.
