India’s Inflation Rate Rises

Posted June 14th, 2011 at 10:55 am (UTC-5)
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Higher food and fuel costs pushed India's inflation rate to 9.06 percent in May, increasing pressure on the country's central bank to increase interest rates again.

The country's main inflation gauge — the wholesale price index — jumped more than half a point last month from 8.66 percent in April.

The government on Tuesday also amended its March inflation rate to 9.68 percent from the provisional 9.04 percent released earlier.

The Reserve Bank of India has increased interest rates nine times since March of 2010, in order to temper rising inflation.

India has been hit particularly hard by rising food and fuel prices.