New Delhi: Economists see overall inflation moving up slightly to 8.5 per cent in January because of high food prices and hike in petrol rates last month.
Headline inflation, which also captures the increase in wholesale prices of food commodities, soared to 8.43 per cent in December, from 7.48 per cent in the previous month.
“Inflation in January will continue to remain at around 8.5 per cent. However, it will start moderating February onwards, on the back of a bumper crop,” said D K Joshi, chief economist at Crisil.
The government is slated to announce the headline, or overall, inflation data on Monday.
As for food inflation, it has remained high during the course of January before declining to a seven-week low of 13.07 per cent towards the end of the month.