India's inflation hits five-month high in worrying sign for Modi government
June 17, 2014, 12:00 am TWN
NEW DELHI--India's inflation accelerated to a five-month high in May, in a worrying sign for Prime Minister Narendra Modi's new government which has made fighting price rises a priority.
The Wholesale Price Index, the most closely watched cost of living monitor, rose to 6.01 percent in May — the highest figure since December and compared to 5.2 percent in April.
The jump, which was in line with market expectations, was driven by higher food and fuel prices, commerce ministry data showed.
The increase comes amid a rally in oil prices and forecasts for weaker monsoon rains that threaten to cut crop production and further drive up food prices.
The price of food across-the-board rose 2.3 percent in May from a year earlier, while fuel prices, including that of electricity, rose by 0.5 percent.