New Delhi: Inflation held under the Reserve Bank of India (RBI) target for a sixth month as the government capped fuel prices even as global crude oil surged to a record.
Wholesale prices rose 3.5% in the week ended 22 December from a year earlier, faster than the previous week’s 3.45% gain, the commerce ministry said on Friday. Analysts had forecast inflation at 3.43%.
The government may raise auto fuel prices by the end of January for the first time in 18 months, oil minister Murli Deora said on Thursday.
The yield on the 7.99% note, due July 2017, was held at 7.77% on Friday, according to RBI’s trading system.
Inflation in the third week of December rose as the index of fuels, with 14.2% weight in the inflation basket, rose 0.5% and the index for manufactured products, including sugar, cement?and?edible?oils,?rose?0.1%.
On Friday, India revised the inflation rate for the week ended 27 October to 3.11%, from 2.97%. The government revises the inflation rate after a delay of two months on additional price data.