Hopes of a status-quo from the RBI in the upcoming monetary policy were dashed as Government data reported that Wholesale Price Index (WPI) inflation was at a 14-month high of 7.52 per cent in November.
With all eyes fixed on the December 18 monetary policy, analysts are now sure that due to a steep rise in inflation, RBI would be forced to raise short-term lending rates at least by 25 basis points or 0.25 per cent. Inflation rose to a 14-month high of 7.52 per cent in November as food items, especially potato and onion became costlier.