‘March-end inflation to be 7.5%’

The Reserve Bank on Tuesday raised the March-end inflation estimate to 7.5 per cent, from 7 per cent projected earlier, indicating that there will be no respite to common man from high prices in the coming months.’The baseline projection for headline WPI inflation for March 2013 is raised to 7.5 per cent from 7 per cent indicated in July... The persistence of inflationary pressures, even as growth has moderated, remains a key challenge,’ RBI said in the Second Quarter Review of Monetary Policy 2012-13.

The WPI inflation for September rose to 7.81 per cent, from 7.55 per cent in August.The RBI said that despite recent moderation, global commodity prices remain high. Gopolitical developments may further flare up prices and induce inflationary pressure.‘Domestic prices of administered petroleum products do not reflect the full pass-through of global commodity prices and under-recoveries persist,’ said RBI.