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India CPI Surge to 8-Year High Fuels Rate Hike Expectations

  • April CPI at 7.79%, highest since May 2014, beating estimates
  • Central bank set to raise rates, revise CPI forecast in June
Updated on

India’s headline inflation accelerated for a seventh month to the fastest since May 2014 on higher fuel and food costs, sending bond yields higher and spurring expectations the central bank will raise rates further to tame prices.

Consumer prices increased 7.79% in April, the Central Statistics Office said in a statement Thursday. That compares with a 7.42% gain predicted in a Bloomberg survey of economists and 6.95% the previous month.