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April inflation stood at 8.66 per cent
16 May 2011: The country' widely watched wholesale price index rose 8.66 per cent in April, lower than the 9.04 per cent in March 2011 but economists say inflation will creep up higher in the months ahead given the expected increase in diesel prices.
The worrying aspect of the data released on Monday was that the government revised the February inflation number to 9.54 per cent from the previously reported 8.31 per cent. Economists say this highlights the inflationary pressures in the economy and the impending increase in diesel prices will further add to the pressure.
The WPI inflation is expected to hit double-digit by September. The Reserve Bank of India is widely expected to again raise interest rates in its June policy review. It has already said that it stands ready to sacrifice some growth to tame inflation.
Source: Times of India