The contribution of non-food manufactured products inflation to overall increase in WPI rose significantly during this period. The inflation in this group reached a high of 8.5 per cent in March 2011 and remained at or above 7 per cent thereafter indicating generalised price pressures. Consequently, the share of non-food manufactured product inflation rose sharply during this phase (Chart 11).
10  BIS central bankers’ speeches  Given the high global commodity prices and their likelihood to remain firm, the threat to price stability from global inflation continues to persist. The faster than expected increase in core inflation suggested that high inflation was becoming increasingly persistent. There was also evidence of demand pressure from increase in real wages besides high fiscal deficit.