Indian inflation rates rise at faster-than-expected rate

<p>Indian inflation climbed at a faster-than-anticipated rate in August.</p>

India's inflation rate has increased at a faster-than-anticipated rate, jumping 7.5 per cent in August on a year earlier.

This is according to the subcontinent's official statistics bureau, which revealed higher food prices are the main factor behind the rise, which is considerably greater than the 6.9 per cent forecast by analysts.

India's industrial output climbed by just 0.1 per cent in July from the previous year, according to data revealed on Wednesday (September 12th).

Fuel prices have also increased, which some believe is a sign the government is prepared to tackle challenging economic reforms and public account deficits.

Investors may be biding their time after these latest reports for the outcome of a crucial Reserve Bank of India meeting to decide interest rate policy, which is scheduled to take place on Monday.

At 09:45 BST, the Mumbai Stock Exchange Sensitive Index rose 2.4 per cent to a value of 18453.6 points.

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