India's annual inflation topped 12 percent for the first time in 13 years in late July, and analysts said it was yet to peak and the Reserve Bank of India (RBI) was not done with monetary tightening.
The wholesale price index, India's most widely watched price measure, rose 12.01 pct in the 12 months to July 26, above the previous week's 11.98 percent and the highest since the current series became available in 1995.
Now it has crossed a whoppnig 12.44 %
" We are looking at inflation peaking around 13.5-14 percent by around January," said Indranil Pan, chief economist at Kotak Mahindra Bank.
"But the index movement seems to have normalised as there is no significant difference from market expectations."
Authorities say lower crude prices and the impact of monsoon rains should moderate domestic prices in a few months and inflation should hover at 8.0-9.0 percent by the end of the 2008/09 financial year.
The government also revised up the inflation reading for the week ending May 31 to 9.32 percent from 8.75 percent, following a pattern of sizeable revisions this year.
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