Indian WPI surprisingly rises

|By:, SA News Editor

India's wholesale price index, one of the country's main inflation gauges, accelerated to +6.5% on year in September from +6.1% in August and came in above expectations for +6%.

The increase in WPI comes amid stuttering economic growth, the weak rupee, which makes imports more expensive, and high food prices. With CPI inflation at 9.5%, the Reserve Bank of India raised interest rates to 7.5% last month.

"Given the RBI's hawkish stance despite slowing growth, we expect the repurchase rate to remain high for now," says strategist Tirthankar Patnaik.

The Sensex is flat; the USD-INR is +0.3% to 61.24 rupees.

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