Inflation is likely to touch 13.5 per cent in November and the Reserve Bank may be forced to raise short-term lending rates and statuary deposits of the banks with the Central bank by 25 basis points each by next month, said global investment banker Goldman Sachs.

"Inflation will begin softening within a few months' time. The prices of crude oil appear to be softening in the global market. A good monsoon will make a big difference," said Ahluwalia

WPI shows a decline in the index for non-food articles, mineral, fuel, power, light and lubricants, and non-metallic mineral products

The plan panel deputy chief’s optimism is in stark contrast to the concern of the finance ministry, which says inflation was a ‘matter of concern’ and a ‘major disappointment’

According to a survey by HR consultancy major Hewitt Associates, the IT sector will see the lowest pay hike of 11.3 per cent in India next year, down from 12.5 per cent in 2008

The growth in advance tax payments by corporates during the June quarter reflect that the fears of economic slowdown are unfounded, according to a finance ministry statement. Advance tax payments grew by 24.1 per cent during the quarter.

Prices of essential commodities, which include food grains, pulses, edible oils, vegetables, dairy products and some other products, including kerosene, soap and safety matches, have more or less stabilised. Planning Commission Deputy Chairman Montek Singh Ahluwalia says the problem of inflation is short term and will moderate in due course

Adopting market prices for industrial consumers will increase diesel prices by 46 per cent, but reduce oil marketing companies’ under-recoveries

Given the supply-driven nature of the current inflation, the RBI's measures are likely to have limited impact towards controlling inflation in the short run. Also high input costs and rising interest rates have impacted industrial growth

The index for food articles increases by 0.9 per cent due to higher prices of maize (4 per cent), condiments and spices (3 per cent), fruits and vegetables (2 percent). Non-food articles go up by 0.2 per cent.

When the Budget for 2008-09 was prepared, impact of Pay Commission's recommendations was taken into account, says Chidambaram.

Prices of crude oil falls by over 23.5 per cent over the last four week from the record high of $147 per barrel as economic slowdown in the US is expected to reduce demand.

The Economic Outlook oor 2008-09 says inflation will start declining and is likely to moderate to 8-9 per cent by March 2009.

High inflationary pressures warrant a tightening monetary stance, says credit rating agency in its quarterly review

Currently, a cylinder of LPG costs Rs 614 to an oil marketing company, but it is sold in the market at half that price — Rs 336, the committee says in its report

The passenger car sales come to 87,724 units last month compared with 89,250 units in the corresponding month last year