Indian inflation eases to 10 months low
Afp, New Delhi
Wholesale price inflation in India eased to a 10-month low in May led by lower prices for food staples such as cooking oil, official data showed on Friday. The weekly wholesale price index rose 5.06 percent in the year ended May 19, from 5.27 percent the previous week. Prices however are still above a central bank target of 4.0 to 4.5 percent for the current year started in April and analysts say the central bank may continue a monetary tightening cycle that began in late 2004 to tame prices further. Wholesale prices are more closely watched than consumer prices in India which are published monthly for urban consumers, farmers and industrial workers. On Thursday, India said the economy grew a faster-than-expected 9.4 percent in the year to March, further raising concern that the central bank may tighten monetary policy in the coming months.
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