The annual rate of inflation based on the wholesale price index ended a downward journey that lasted almost five weeks and rose marginally to 10.72 per cent for the week ended October 25, from 10.68 per cent in the previous week.

The spike in inflation rate has been due mainly to a rise in the prices of cereals and vegetables. Certain essential items like butter in the manufactured category also became expensive.
 
Among other articles in the manufactured group, prices of gur increased, while woolen clothes became expensive by one per cent.
 
Further, prices of automobiles, including motorcycle and autorickshaw, increased in the week under review.
 
However, spices and cement prices showed a decline. Steel and fuel prices remained unchanged.

The revised inflation rate for the week ended 30 August stood at 12.38 per cent against 12.10 per cent during the corresponding period last year. 

Inflation rate has been ruling at double digits ever since it rose from 9.32 per cent on 31 May to over 10 per cent in the first week of June, after the government announced a hike in retail fuel prices.

The inflation rate had hit 12.91 per cent in early August, the highest level in the current data series starting April 1995.

Inflation rate was at 3.11 per cent in the corresponding period a year ago.

The inflation rate has, however, been declining and had hit a five-month low on 30 October, helping the Reserve Bank to ease monetary restrictions and reduce interest rates to bolster economic growth.

The RBI cut its benchmark rate – the repo rate – for a third time on 1 November, in a bid to further reduce borrowing costs amidst declining fuel and food prices.