India's inflation above 9.0% in May
2011-06-14 14:54:47
India's annual inflation accelerated above market forecasts to 9.06 percent in May, official data showed on Tuesday, increasing pressure on the central bank to raise interest rates further.
The rise in the wholesale price index -- the government's preferred measure of the cost of living -- was lower in April at a provisional 8.66 percent, the ministry of commerce said.
Economists had forecast inflation in May to be 8.70 percent.
Inflation is one of the biggest problems for India's government and is the highest among all major Asian economies.
India's central bank, the Reserve Bank of India (RBI), has been among the most hawkish in the region, having increased key rates nine times in the past 16 months.
It is expected to raise interest rates at its next monetary policy meeting on Thursday.
Rising commodity prices and costlier fuel are likely to keep inflation well above the bank's comfort level of between 5.0 to 6.0 percent, economists say.
The ministry also revised upwards the inflation rate for March to 9.86 percent from the provisional 9.04 percent reported earlier.
The RBI expects the cost of living to remain at elevated levels through the first half of the year before moderating.