India’s retails inflation spikes to 5 pct

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NEW DELHI, July 12 (Xinhua) — India’s retail inflation rate, also known as consumer price inflation (CPI), spiked to a five-month high of 5 percent in June this year, according to data released by ministry of statistics and program implementation on Thursday.

Inflation experts said it was triggered by surging fuel prices and fall in the rupee against the U.S. dollar during the period.

CPI is the key price indicator that the Reserve Bank of India (RBI), central banking institution, tracks.

Last month, RBI raised its benchmark interest rate for the first time since 2014, by 25 basis points to 6.25 percent, citing rising inflation.

Meanwhile, separate data released by the ministry showed that factory activity growth in India, determined by Index of Industrial Production, slipped to 3.2 percent in May, from 4.9 percent in April.

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