Indian inflation falls slightly to 7.25 percent

| July 16, 2012

NEW DELHI: India’s inflation slowed to 7.25 percent in June from a year earlier, official data showed Monday, but it remained above the central bank’s comfort level, making further rate cuts difficult.

The June reading was below the median forecast of 7.60 percent in a poll of 18 economists by Dow Jones Newswires and also lower than the reading for May of 7.55 percent.

A 22 percent shortfall in vital monsoon rains is also causing concern about lower farm output, which would increase the cost of food and send inflation spiralling above 10 percent again.

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Category: Headlines, India

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