New Delhi, May 14: India’s wholesale price index (WPI) rose an annual 9.59 percent in April, driven by high food and fuel prices, government data showed on Friday.
The latest data was higher than a median forecast of a 9.5 percent rise in a poll and was lower than March’s annual rise of 9.90 percent.
Government officials have said the wholesale price inflation has already peaked, but the central bank has described inflation as “worrisome”.
The Reserve Bank of India (RBI) has raised rates twice since mid-March to rein in inflationary expectations, which it said could be exacerbated by capacity constraints.
The markets have priced in a 25-basis points hike in key rates in the July policy review.
The bank expects inflation to ease around June on a normal monsoon and on a moderation in food prices and sees March 2011 WPI inflation at 5.5 percent.
The wholesale price index is more closely watched than the consumer price index in India because it covers a higher number of products.
—-Agencies