Driven by high prices of onions and other food items, India's wholesale price inflation surged to 6.46 percent in September, the sharpest in seven months.
According to data released by the ministry of commerce and industry, the headline inflation, measured in terms of the Wholesale Price Index (WPI), accelerated to 6.46 percent last month.
The WPI had increased 6.10 percent in August as against 5.85 percent in July.
The headline inflation was recorded at 8.07 percent during September 2012. The food inflation for the month under review rose to 18.40 percent from 8.06 percent in the corresponding month of the previous year.
Prices of vegetables shot up by 89.37 percent in September, from a 6.73 percent deceleration in the corresponding month of 2012.
The prices of onions soared by 322.94 percent in the month under review from a fall of 24.69 percent.
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Onion prices rose 244.62 percent year-on-year in August. Fruits became costlier by 13.54 percent, from 7.02 percent in the corresponding month of 2012.
Eggs, meat and fish became slightly costlier by 13.37 percent, from 13.22 percent recorded in September 2012.
Rice became costlier by 18.76 percent from 12.58 percent in September 2012.
Food inflation had accelerated by 18.18 percent in August on an year-on-year basis. In July, the food items became dearer by 11.9 percent.
Acceleration in inflation levels will make it difficult for the Reserve Bank of India (RBI) to cut rates and bring in cheap funds for the sluggish economy to grow.
However, it may even go in for a rate hike to check increasing prices.
The RBI is scheduled to meet and announce its monetary policy Oct 29.