Rest easy, July inflation, at 9.22%, not as bad as you think

New Delhi: India’s wholesale price index (WPI) rose an annual 9.22 percent in July, government data showed on Tuesday.

[caption id=“attachment_61614” align=“alignleft” width=“380” caption=“The easing may just not be sufficient enough for the Reserve Bank of India to change its policy of boosting interest rates to contain prices. Amit Dave/Reuters”] [/caption]

The figure was almost in line with the median forecast for a 9.2 percent rise in a Reuters poll and was lower than the annual rise of 9.44 percent in June. The WPI is more closely watched than the consumer price index (CPI) in India as it covers a higher number of products.

The Reserve Bank of India (RBI) has raised rates 11 times since March 2010 to combat high inflation and is expected to tighten them further, despite the global economic uncertainty. The RBI is scheduled to meet on September 16 for its next policy review.

Reuters