India’s food inflation accelerated to a three-week high, adding pressure on the central bank to raise interest rates next week.
An index measuring wholesale prices of agricultural products rose 8.76 percent in the week ended April 16 from a year earlier, the commerce ministry said in a statement in New Delhi today. The gain in the previous week was 8.74 percent.
The Reserve Bank of India may boost rates for the third time in 2011 in the May 3 policy announcement, economists said. Goldman Sachs Group Inc., Standard Chartered Plc and Barclays Plc raised their forecast for rate increases this year after benchmark wholesale-price inflation accelerated to 8.98 percent last month, stoked by food and manufactured products. --- read more