food costs

India inflation likely rose to 4% in May as food, fuel costs climb

A Reuters poll of 38 economists forecasts India's consumer price inflation rose to 4.0% in May, up from 3.48% in April, driven by rising vegetable prices and four fuel price hikes by state-owned retailers. The Reserve Bank of India kept rates unchanged last week, but raised its inflation forecast for the fiscal year to 5.1%. Economists warn that wholesale price inflation, which accelerated to a 3-1/2-year high of 8.3% in April, will feed through to consumer prices gradually.