India’s Inflation Rate Rises

Posted July 14th, 2011 at 1:05 pm (UTC-5)
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India’s annual inflation rose to 9.4 percent last month, increasing pressure on the country’s central bank to raise interest rates again.

The commerce ministry on Thursday reported the jump in the wholesale price index, which was still below the median forecasts of 9.7 percent.

India has been grappling with higher food and fuel costs, with the impact being felt particularly by the country’s poor.

The Reserve Bank of India has raised interest rates 10 times since March of 2010 to try and counter rising inflation. But the higher cost of borrowing money has affected several sectors of the economy, with car sales and industrial production slowing. Indian stock markets have also lagged behind others in Asia.

The commerce ministry on Thursday also revised April’s inflation upward to 9.74 percent from a provisional estimate of 8.66 percent.