India Bonds Decline as Fuel-Price Increase May Stoke Inflation
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India’s 10-year bonds fell on concern inflation will accelerate after diesel prices were raised for the first time in a year.
A panel led by Finance Minister Pranab Mukherjee allowed refiners including Indian Oil Corp., the nation’s biggest, to increase diesel prices by 3 rupees (7 cents) a liter, kerosene by 2 rupees a liter and cooking gas by 50 rupees for every 14.2 kilogram bottle. Oil Minister S. Jaipal Reddy made the announcement after the close of trading on June 24.