Inflation seen at 8.91 pct on Nov 22

Shubhada Rao, chief economist at Yes Bank, said primary articles that include cereals, pulses, fruits and vegetables and oilseeds were facing upward pressure on prices.

“ATF (aviation turbine fuel) may bring the fuel index marginally lower, while manufacturing is seen stable to slightly soft,” she said.

Still, some economists expect the inflation rate to fall steadily in the coming weeks.

Enam Securities economist Sachchindanand Shukla said he expected the wholesale price index to fall in the next three readings, before climbing in the last two weeks of December due to a lower base during that period in the previous year.

Inflation had surged into double digits in early June after an increase in state-set retail fuel prices, and peaked at 12.91 per cent on Aug. 2, the highest reading since annual numbers in the current data series became available in April 1995.

With inflation softening, most economists are expecting the central bank to aggressively cut rates in the coming days to bolster sagging economic growth.

Prime Minister Manmohan Singh, who has taken over the finance portfolio, told officials on Monday the economy must be closely monitored and timely steps had to be taken to maintain growth momentum.

On Tuesday, a senior government official said law makers were likely to announce a package aimed at helping the struggling housing, export and finance sectors by early next week.

The authorities have been releasing inflation data around noon on Thursdays recently, though it is officially scheduled to be released around 6 p.m.

The wholesale price index is more closely watched than the consumer price index (CPI) because it includes more products and is also published weekly. The CPI is released monthly.