New figures from industry body Siam show car sales in India have slowed down to their lowest level in two years. Analysts say higher prices of vehicles and rising interest rates have turned customers away. Total sales in May stood at 158,817 units, a rise of just 7%. Siam also expects sales for the full fiscal year to slow down to between 16-18%.
In other news, high food inflation was easing has returned. Prices of fruits have shot up, along with those of onions towards the end of May. India’s food price jumped 9.06% in the period to 28 May. The previous week it had gone up just 8.06%. The speed up in food inflation is significant because it could prompt the Reserve Bank to increase policy rates yet again when it meets on 16 June.
And finally, Indian markets extended their loses for a second straight session, with the high food inflation figures stoking investor concerns. The Sensex lost nine points to 18,385. And the Nifty fell six to 5,521.