Aditi Nayar, principal economist with ICRA, said the continued rise in crude oil prices is expected to push up the mineral oils sub-index in the ongoing month. “However, the subsequent upside risk posed by crude oil and other fuels is likely to be limited,” she said.
She said the Brent crude may not sustain beyond $55 a barrel. Also, daily adjustment in domestic retail prices would not allow any shock.
Altogether, inflation in fuel and power doubled to 9.99 per cent from 4.37 per cent. Food inflation more than doubled to 5.75 per cent from 2.15 per cent. Inflation in tomatoes rose to 259.7 per cent 209.56 per cent.
Inflation in tomatoes is expected to come down as prices have fallen drastically in September. Onions saw inflation of 88.46 per cent from deflation in the previous few months.
Even after taking out volatile inflation of fuels and food, core inflation rose to 2.6 per cent from 2.1 per cent due to rise in metal prices.