Inflation to hit 17% by Sept: Report

New Delhi: Global investment banker Barclays Capital has projected that inflation may surge to 17%by September on back of another round of hike in fuel prices in the same month.
    "We believe WPI inflation will remain in double-digit territory until May 2009. We expect WPI inflation of 17% by September 2008," the report said. For the week-ended June 28, wholesale prices-based inflation touched a new 13-year high of 11.89% much higher than the RBI tolerance limit of 5.5% for the current fiscal.
    According to the report, the government is likely to hike fuel prices between 10 and 20% again as early as September to limit fiscal risks.
    Rise in the price of the Indian crude oil basket could be the trigger for another round of increase in fuel prices to $145-150 per barrel from the current $132 per barrel could be the trigger for another round of increase in fuel prices, it said.
    The government last revised retail petroleum prices with effect from June 5, when petrol prices was increased by Rs 5 a litre, diesel by Rs 3 per litre and cooking gas by Rs 50 per cylinder. This resulted in inflation touching a double digit figure of 11.05% for the week ended June 7. AGENCIES