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India inflation hits 5-month high
June 16, 2014, 12:55 pm

On Monday, the rupee also hit a one-month low and weakened to 60.23 per dollar, its lowest level since May 6 [AP Images]

On Monday, the rupee also hit a one-month low and weakened to 60.23 per dollar, its lowest level since May 6 [AP Images]

The Indian Commerce Ministry data released on Monday revealed India’s wholesale price inflation hit a five-month high in May at 6.01 per cent up from 5.2 per cent in April. The figures have dashed hopes for a cut in interest rates.

On Monday, the rupee also hit a one-month low and weakened to 60.23 per dollar, its lowest level since May 6.

Food inflation rose by 9.50 per cent up from 8.64 per cent in April, said official data.

The new Indian government will present the federal budget next month and has promised fiscal prudence in its election manifesto.

The Narendra Modi-led government would also need to tackle a further spike in inflation if as the Indian Meteorological Department has predicted the rainfall in June-September is likely to be below normal at 93 per cent of the long period average. In terms of quantity, this could be the lowest in four years.

Source: Agencies