India: Inflation fears prompt another interest rate hike

New Delhi : Analysts report that inflation in India is expected to remain high until year end. Annualised inflation grew to over 9 per cent in June largely due to the rising costs of manufactured products and gasoline. In its latest meeting the Reserve Bank of India raised its key interest rate by half a percent, the 11th rise in less than a year and a half. In a statement the Reserve Bank said that inflation remains the country’s main economic concern.