Inflation computed by taking the gross domestic product (GDP) deflator for the first quarter of fiscal 2013 (FY13) works out to 7.7% year-on-year compared with 6.4% in the previous quarter. The Reserve Bank of India (RBI) will now have even less reason to loosen monetary policy.

Paras Jain/Mint

Also See | Inflation Woes (PDF)

Incidentally, inflation computed according to WPI does not show a sharp jump between the March and June quarters. However, there is a similar jump in the Consumer Price Index in the June quarter compared with the March quarter, largely due to higher food prices.