Inflation doubles

Inflation more than doubled in a month to 1.34% in October despite cheaper food prices, which analysts see would strengthen the case for the Reserve Bank of India to tighten money supply. Strong showing by the industry in September has already added fuel to the debate for withdrawing fiscal stimulus. Inflation was 0.5% in September, according to data from the government, which has switched to the monthly mode for measuring rise in wholesale prices. Among food items, vegetable prices declined considerably to 16.43% from September level, but figures of the actual decline were not available. However, onions and potato prices rose 29.88% and 11.18%, respectively. With the RBI expecting inflation to touch 6.5% by the end of this fiscal, analysts believe the central bank might go full steam on ending its easy monetary policy.