INDIA’S headline inflation slowed to its lowest level in five months in June, helped by slower increases in fuel prices, adding to pressure on the central bank to cut interest rates to help revive the economy.
The wholesale price index — India’s main inflation gauge — rose an annual 7.25 percent in June, lower than the 7.62 percent rise estimated by analysts. Wholesale prices provisionally rose 7.55 percent in May.
India’s bond yields and overnight index swaps rates fell on the news, with some investors predicting the low number will lead the Reserve Bank of India to cut the repo rate at its policy meeting July 31.
Inflation that has been above 7 percent since 2009 has angered voters, marring Prime Minister Manmohan Singh’s second term. (SD-Agencies)
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