Bonds prices fall, rupee weakens as inflation rises to 7.55%

India’s bond prices and stocks fell, while the rupee weakened on Thursday after May headline inflation rose 7.55 percent from a year earlier, dashing hopes the wholesale price index would fall below the 7 percent level.

The benchmark 10-year bond yield rose 3 basis points to 8.28 percent from levels before the data, while the main BSE index erased earlier gains to fall 0.2 percent.

[caption id=“attachment_343262” align=“alignleft” width=“380” caption=“India’s wholesale price index rose 7.55 percent in May from a year earlier. Reuters”]  [/caption]

The rupee weakened to 55.75/76 against the dollar from around 55.70 before the inflation data.

India’s wholesale price index (WPI) rose 7.55 percent in May from a year earlier, compared to expectations for an annual rise of 7.60 percent.

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Reuters