India’s Move to Increase Gasoline Prices May Stoke Inflation

India’s move to increase gasoline prices by the most in three years may accelerate what is already the fastest inflation rate among Asia’s major economies, damping demand for the nation’s assets.

Benchmark bond yields may climb to a 31-month high on concern faster price increases will erode returns from financial-market investments, said Pradeep Madhav, managing director at Securities Trading Corp., a primary dealer which underwrites government debt. India raised gasoline prices by as much as 8.5 percent yesterday to limit losses at state-run refiners and help the government cut fuel subsidies.