17 Aug 2011

Inflation in India down slightly

7:25 am on 17 August 2011

Inflation in India slipped slightly in July to 9.22% from 9.44%.

The fall was mainly due to a fall in food prices, but analysts still expect more interest rate rises to try to keep inflation under control.

The BBC reports Inflation is a major headache for the government and the central bank has raised interest rates 11 times in 18 months to try to keep a lid on it.

The government is projecting growth of 8.5% for the current fiscal year that ends next March.