World Business

Indian inflation to grow in July

By Tushar Dhara (China Daily)
Updated: 2010-07-20 10:17

NEW DELHI - India's inflation will accelerate in July, the government's top statistician said, increasing pressure on the central bank to raise interest rates next week for a fourth time in five months.

"The inflation number in July will be higher than in June, in large measure because of what has happened to fuel prices," said T.C.A. Anant, without providing details.

Related readings:  China surpasses India for outsourcing  India output growth slows to 11.5%, rate pressure stays   Wen: China regards India as important partner  India's economy grows 8.6%, adding pressure on rates

The benchmark wholesale-price index jumped 10.55 percent in June after climbing 11.23 percent in April, the most in 19 months, according to a report published last week.

Prime Minister Manmohan Singh's government on June 25 allowed state-run refiners including Indian Oil Corp to raise prices of gasoline and diesel in a bid to cut its oil subsidy and narrow the budget deficit.

Governor Duvvuri Subbarao is due to announce the next monetary policy decision on July 27.

"The full impact of the fuel price revision on inflation numbers is yet to be seen," the New Delhi-based Federation of Indian Chambers of Commerce & Industry said in a report on July 17.

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