(MENAFN) Released data show an acceleration in Indian inflation, scoring the highest in three months and crushing all hopes of a near-term rate cut to revive the already suffering economy, The Peninsula Qatar reported
Politically speaking, inflation is a very sensitive issue in India and the Congress government which has been attempting to cut price rises that cause huge suffering for the nation's millions of poor by taking away their buying power
The inflation was mainly steered by price increase of food, fuel and manufacturing. Rice, for example, registered a 12.6 percent year-on-year rise, while vegetables and fuel logged 8.6 percent and 11 percent rise, respectively.
"Indian inflation will prove stubborn from here,"said an analyst at Capital Economics, "even when monetary easing does begin, we think.
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