By IANS,
New Delhi : The Indian policy makers’ duel with inflation is going to continue, at least for some more months, as latest data Tuesday showed that annual inflation rose to 9.06 percent in May, compared to 8.66 percent in the previous month.
The inflation figures for March were also revised upwards to 9.68 percent compared to the provisional figure of 9.04 percent, according to a statement from the commerce and industry ministry.
The latest figures will have an impact on the Reserve Bank of India’s decision to hike interest rates when it takes up the mid-quarter review of the monetary policy on June 16. Most economists expect a 25 basis points increase in key interest rates.
Tuesday’s figures showed that the manufactured products index, the largest constituent of the wholesale price index — the barometer that indicates price behaviour — shot up 7.27 percent, while the primary articles index rose sharply by 11.3 percent.
The index of food articles too increased by 8.37 percent in May.
A recent survey of urban households conducted by the RBI paints a grim picture as far as inflation is concerned.
Urban households expect inflation to rise further by 40 basis points to 11.9 percent in April-June quarter and by 120 basis points to 12.7 percent during financial year 2011-12 from the perceived current rate of 11.5 percent, the RBI said in the June issue of its monthly bulletin.