India inflation little-changed as rate decision looms

A vendor selling vegetables in India The rising cost of food and fuel have been a threat to India's economic growth

Related Stories

India's inflation rate was little-changed in March, making a decision on interest rate cuts more complicated for the Reserve Bank of India (RBI).

Consumer prices in country rose by 6.89% from a year earlier, compared with 6.95% in the previous month.

The RBI has been under pressure to cut its interest rates amid a slowdown in India's economy.

However, high consumer prices, especially that of food and fuel, have been a key political issue.

There have been concerns that a cut in the cost of borrowing may spark a rise in consumer prices, which have started to come down in recent months.

The RBI is scheduled to announce its latest interest rate decision on Tuesday.

"We expect RBI's statement to be slightly on the hawkish side, highlighting suppressed price pressures on inflation," said Kumar Rachapudi of Barclays Capital.

However, Mr Rachapudi added that despite the inflation risks, the bank may cut interest rates citing "growth risks both domestically and globally".

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories



  • ScissorsWithout Scotland?

    How might things change for the rest of the UK?

  • Diagrams showing bowler and batsmanAnyone for Vigoro?

    The bizarre Edwardian attempt to merge tennis and cricket

  • Payton McKinnonKilling heat

    Why so many American children die in hot cars

  • Dr Mahinder Watsa Dr Sex

    The wisecracking 90-year-old whose agony column is a cult hit

  • Prince George and the Duke and Duchess of Cambridge outside St Mary'sIn pictures

    Prince George has had an eventful first year

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.