India's headline inflation inches up to 9.73 pc in October 2011

New Delhi, Nov 14 (PTI) India's headline inflation hovered stubbornly near the double-digit mark in October, rising marginally to 9.73 per cent as prices of food products, fuel and manufactured goods put more pressure on the common man's pocket and major sectors of the economy. Inflation, as measured by the official Wholesale Price Index (WPI), had stood at 9.72 per cent in September, 2011 and at 9.08 per cent in October, 2010. On an annual basis, food items became 11.06 per cent more expensive year-on-year during the month under review. Food inflation was recorded at 9.23 per cent in September. Inflation in overall primary articles stood at 11.40 per cent in October, compared to 11.84 per cent in September. Prices of manufactured products, which have a weight of around 65 per cent in the WPI basket, went up by 7.66 per cent year-on-year in October, as against 7.69 per cent in September. Inflation in manufactured items has been high since February this year, when it crossed the 6 per cent-mark. Experts said stubborn inflation will put pressure on the government and the Reserve Bank of India, the country's central banking system, at a time when the latest data shows growth in industrial output plunged to a two-year low of 1.9 per cent in September. Inflation in the fuel and power segment stood at 14.79 per cent on an annual basis in October, as against 14.09 per cent in the previous month. This is the 11th consecutive month when inflation has been above the 9 per cent-mark. Elevated inflation levels close to double digits are likely to put pressure on the country's central bank RBI to look for alternative policy options to bring the price situation under control.The apex bank, which has already hiked key policy rates 13 times since March, 2010, to tame inflation, has already said that another rate hike at its next mid-quarterly policy review in early December is unlikely. India Inc has said the string of rate hikes, which have raised the cost of borrowing, have acted as a dampener to fresh investment and hindered growth. Growth in industrial production fell to a two-year low of 1.9 per cent in September. Economic growth in the April-June quarter stood at 7.7 per cent, the slowest expansion rate in the past six quarters. At its second quarterly review last month, the RBI had said it expects inflation to start moderating by December and fall to 7 per cent by March, 2012. PTI