Inflation accelerates to 6.46 percent in September * Bonds fall, rupee weakens as inflation accelerates Indias headline inflation accelerated to a seven-month high of 6.46 percent in September, mainly driven by higher food prices, government data showed on Monday. The wholesale price indexs annual rise compared with a 6 percent rise estimated by analysts in a Reuters poll. Wholesale prices, Indias main inflation measure, had risen 6.1 percent in August. Food prices rose 18.40 percent year-on-year last month, faster than an annual rise of 18.18 percent in August. The reading for July was revised to 5.85 percent from 5.79 percent, data released by the Ministry of Commerce and Industry showed. Bonds slumped, while the rupee weakened on Monday, after wholesale price inflation (WPI) came in above analysts estimates, raising expectations that the central bank will raise interest rates for a second consecutive month in late October. The WPI in September rose to 6.46 percent, above analysts estimates of 6.00 percent and above the 6.10 percent seen in August. Indias benchmark 10-year bond yield rose 8 basis points to 8.58, while the rupee weakened to 61.24 per dollar from around 61.20.
Posted on: Mon, 14 Oct 2013 07:13:20 +0000
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