India Inflation Rises Due to Rupee Fall

India’s inflation rate rose by more-than-expected in July as a weaker currency brought higher import costs.

India’s main gauge of inflation, the Wholesale Price Index, rose 5.79% from a year earlier, up from 4.86% in June.

The Indian rupee has fallen 10% against the US dollar this year.

Policymakers have taken various steps in recent days to try and stem the rupee’s decline. Analysts said the latest data may see the central bank unveil further measures.

Last month, the Reserve Bank of India (RBI) on Monday hiked the interest rate at which it lends money to other banks and also put a cap on their daily borrowings.

It also tightened reserve ratio requirements for banks to curb the supply of rupees.

via BBC

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