Price growth in India has rebounded to 6.5% year-on-year from 5.7% in December last year, above the upper range of the Reserve Bank of India’s baseline scenario, the national statistics ministry has reported.
The sharp rise in prices has caught the central bank by surprise, which will face pressure to continue its tight monetary policy.
The Reserve Bank already raised the price of money, for the sixth time since May, by 25 basis points on February 7 to 6.50%. The institution is scheduled to hold its next meeting on April 3.
The price of food, which accounts for more than half of the index, rose by 6.2%, while fuel and electricity rose by 10.8%. Clothing and footwear rose by 9.1%, while housing prices rose by 4.6%.
Core inflation, which excludes food and energy prices due to their greater volatility, closed above 6% for the sixteenth consecutive month.
Source: (EUROPA PRESS)
