Costlier diesel lifted inflation to a 10-month high of 7.81 per cent in September, this year. Inflation, as measured by the Wholesale Price Index, had stood at 7.55 per cent in August this year, and at 10 per cent in September last year.

For the fuel and power category, inflation increased to 11.88 per cent, from 8.32 per cent in August.

Inflation in diesel rose 8.94 per cent in September, from 0.36 per cent, after the government raised its price on September 13.

But food inflation declined to 7.86 per cent in September, from 9.14 per cent in August.

Inflation in eggs, meat and fish was 12.44 per cent, in milk 6.25 per cent, and in fruits 6.96 per cent. But inflation in vegetables was minus 6.78 per cent in September, on a year-on-year basis.

The rate of price rise in manufactured products was 6.26 per cent in September, against 6.14 per cent in August.

Inflation for July was revised upwards to 7.52 per cent, from 6.87 per cent as per the provisional estimates.

Reserve Bank of India Governor D Subbarao has said the battle against inflation has not ended yet and high prices were mostly hurting the poor people, who do not have a mechanism to get their voice heard.

He said, while delivering a lecture at Cornell University in New York that the inflation continues to remain high and needs to be brought down to more acceptable levels of five per cent or less.

Mr Subbarao has maintained that the issue of inflation needs to remain the top priority for the Reserve Bank of India.

Home Minister P. Chidambaram today clarified that his comments regarding the impact of rising prices on the middle class, have been delibrately distorted by a newspaper report. In a statement issued today, the Minister said that he had not mocked anyone in the press conference held in Bangalore yesterday. He said, he had explained that the rise in food prices was due to the need to pay more to the farmers. The statement said that in an answer to a question on the burden of rising prices on the common man, the Home Minister had referred to the need for giving higher Minimum Support Prices, MSPs, to the farmers and the benefits of programmes like MGNREGA and PMGSY which directly assist(सहायता करना) the poorest section of the society

The Reserve Bank of India (RBI) has said that it could do little to arrest the fall of rupee if the decline was caused by fundamental weakness of the economy or due to global factors. Speaking to reporters in Mumbai on Friday, RBI Deputy Governor KC Chakrabarty said in such a case, RBI could only take more calibrated steps in the forex market. As a measure to contain dollar demand and help support the rupee, Mr. Chakrabarty also hinted at opening a separate window for oil companies. He also said the Government must address trade deficit issues if the fall of the rupee is due to weak fundamentals. Talking about the forthcoming mid-quarter review of the monetary policy slated for June 18, Mr. Chakrabarty said if inflation came down, interest rate would also come down too.  On the highly disappointing GDP numbers, he warned saying if corrective measures were not taken soon, GDP would fall further. Meanwhile, RBI on Friday launched the 28th round of the 'Inflation Expectations Survey of Households'. The three-month study will seek qualitative responses from 4,000 households across 12 cities on price changes and inflation expectations.  The survey results are used as one of the important inputs for monetary policy formulation.