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India CPI Quickens as Output Grows, Hurts Case for Rate Cut

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India’s inflation accelerated as factory output grew, hurting the case for central bank Governor Raghuram Rajan to cut interest rates again.

Consumer prices rose 5.01 percent in May from a year earlier after a 4.87 percent increase in April, the Statistics Ministry said in a statement in New Delhi on Friday. The median of 35 estimates in a Bloomberg survey had predicted a 5 percent gain. Industrial production grew 4.1 percent in March compared with an estimated 1.5 percent increase.