Annual
wholesale price inflation hit a four-month high of 5.26
per cent in the 12 months to Oct. 14, edging nearer to
the top of the central bank''s estimate.
But
analysts say sustained demand for goods could see the
inflation rate rise by nearly 100 basis points by end-December.
Asia''s
fourth-largest economy has grown at an average 8 per cent
in the past three years, industrial output rose 9.7 per
cent in August from a year earlier and analysts have said
consumer demand is strong enough to prompt a rate increase.
"Manufactured
products inflation has remained relatively moderate so
far, although it has edged higher to 4.2 per cent, year-on-year
as on Oct. 7, 2006, from 3.0 per cent a year ago,"
the central bank said.
It
said buoyancy in manufacturing and services, along with
a recovery
in domestic stock markets and a positive investment climate
suggested recent growth momentum would be maintained in
2006-07.
It
estimates that the economy will grow at 7.5-8.0 per cent
this year.
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