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The marginal dip in whole sale price index will be viewed with reservations as the indirect effect of the fuel revision was likely to drive up prices higher.
Also, the consumer price index which measures the retail inflation, rose marginally to 9.75 per cent in October from a year earlier compared to 9.73 per cent in the previous month.
Reuters had pegged the October benchmark inflation at 7.96 per cent.
However, demands of an early rate easing by the Reserve Bank of India is bound to get shriller as it comes two days after data for industrial production showed a contraction by 0.4 per cent in September against expectations of a rise of 2-3 per cent.
Fuel which enjoys a 15 per cent weight in the overall index jumped eased marginally to 11.7 per cent from a year earlier in October as compared to 12 per cent reported in September.
The government also revised Augusts' inflation upwards to 8.01 per cent as compared to 7.55 per cent reported earlier.
The data released on Wednesday also showed significant fall in food inflation which will come as a huge relief.
Food prices continued its softening and came in at its lowest level this fiscal to 6.62 per cent from 7.86 per cent in September and way below the double digit growth recorded earlier this fiscal.
The commerce ministry release pegged the cumulative rise in prices this fiscal (Apr-Oct) at 4.78 per cent lower than the 5.02 per cent build up during the same period last year.
Within the food basket, potato prices came down to 49 per cent from 52.2 per cent last month triggering a larger contraction in overall vegetable prices to 7.45 per cent.
Prices of primary articles as a whole lowered to 8.21 per cent from 8.77 per cent in September at the back of monsoons picking up pace in late August.
Milk prices and eggs, meat and fish rose a tad bit to 6.35 per cent and 13.28 per cent respectively.
Manufactured products which constitute 64.97 per cent of the index, rose by 5.95 per cent after clocking the highest rise this fiscal in September at 6.26 per cent.
Courtesy: Economic Times