June 14, 2011

May inflation rises to 9.06 per cent YoY

India's wholesale price index (WPI) rose an annual 9.06 per cent in May, driven by higher manufactured goods prices. The Reserve Bank is set to continue its fight against inflation despite a slowdown in economic growth, as price rise is still a threat to the economy, expect a 25 bps hike in key policy rates at Thursday's mid-quarter policy review.

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