INFLATION shot up to a 10 month high in India last month, official data revealed yesterday, worrying policymakers and denting the emerging economy’s prospects.
Yet in neighbouring China, inflation eased further, stoking expectations of further stimulus from its monetary authorities.
Indian inflation rose to 7.8 per cent in September, driven up from August’s level of 7.55 per cent by higher fuel costs.
The government increased the price of heavily subsidised diesel on 13 September in a bid to rein in its spending.
The Reserve Bank of India has kept its policy rate at eight per cent since April.
Beijing could reveal further monetary easing after China’s rate of inflation slipped from two per cent in August to 1.9 per cent last month. Its economy has been hit by global economic slowdown.
City A.M. Reporter