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New Delhi - India's wholesale price index (WPI)-based inflation rate has surged to a new high of 11.89 percent in the 12 months to June 28, higher than previous week's figure of 11.63 percent, government data showed on Friday. The inflation was at 4.42 percent in the corresponding week a year ago.
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The figure is higher than what analysts forecast in a poll conducted by International Business Times.
The new figure is expected to make the central bank move to tighten monetary policy further.
Last month the Reserve Bank of India (RBI) moved to hike the repo rate, or the key lending rate at which the central bank lends funds to commercial banks, from 8 percent to 8.50 percent, and the cash reserve ratio (CRR) or the proportion of reserves the commercial banks must keep with the central bank, from 8.25 percent to 8.75 percent.
Though it termed its action "somewhat painful," the central bank said it will continue its "heightened vigil" and will act again, if necessary, to keep inflationary pressures down.
The bank is scheduled to meet on July 29 for its quarterly policy review but may act sooner to tame inflation.
Don't expect the expected from Dibakar Banerjee.
Police in Mumbai said on Sunday they have arrested two men they say were prepari...
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