Business | Economy
Indian inflation rises above 5% to a new nine-month high
Indian inflation rose further above 5 per cent in early March to a fresh nine-month high, and analysts said mounting price pressures would keep monetary policy tight despite more signs this week of slowing growth.
- Reuters
- Published: 00:10 March 15, 2008
New Delhi: Indian inflation rose further above 5 per cent in early March to a fresh nine-month high, and analysts said mounting price pressures would keep monetary policy tight despite more signs this week of slowing growth.
The widely watched wholesale price index rose 5.11 per cent in the 12 months to March 1, higher than the previous week's 5.02 per cent and well above a market forecast of 4.97 per cent, data showed on Friday.
It was the highest since a reading of 5.15 per cent on May 26, 2007, and the second consecutive week above 5 per cent, the level at which the Reserve Bank of India (RBI) wants to limit inflation in the fiscal year that ends in March.
"We seem to be heading towards higher levels of inflation, particularly post-March, when the base effect support withers out," said Gaurav Kapur, economist at ABN Amro Bank in Mumbai.
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