India's inflation picks up but RBI seen cutting rates

New Delhi, Mar 14 (ANI): India's headline inflation picked up in February on higher fuel costs but another measure of price pressure cooled, reinforcing expectations that the RBI will deliver a rate cut next week. The wholesale price index (WPI), the main inflation indicator, rose an annual 6.84 percent in February, higher than the 6.54 percent rise estimated by analysts. Wholesale prices rose 6.62 percent in January. But non-food manufacturing inflation, which the RBI uses to gauge demand-driven price pressures slowed to 3.8 percent in February, the weakest pace since March 2010. Trade minister, Anand Sharma said that the increasing prices were worrisome but the country's central bank, the Reserve Bank of India (RBI) needs to cut the credit rates.