Indian inflation stays in double digits

INDIA: The annual inflation rate of India rose marginally to 11.98 per cent for the week ended July 19, from 11.89 per cent the previous week, the Indian Finance Ministry said Thursday.

This is the seventh consecutive week in which inflation has stayed in double digits.

In the inflation break up, manufactured index was up 0.2 per cent, while prices of basic metals, alloys and metal products group went up marginally. The index for fuel, power, and light index remained unchanged. The textiles group went up by 0.9 per cent.

The ministry said the inflation remains stable week-on-week basis. Concerned over the high inflation levels, the Reserve Bank of India in its July review increased both the cash reverse ratio and the repo rate.

It also indicated that more tough measure will be taken in future if the money supply levels don’t come down to the required level.

The bank’s Governor Y.V. Reddy indicated that inflation would stay at high levels in near future before stating to moderate from the third quarter. New Delhi, Friday, Xinhua