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| India inflation rate rises to 11% | India inflation rate rises to 11% |
| (10 minutes later) | |
| Indian inflation has risen to a new 13-year high. | Indian inflation has risen to a new 13-year high. |
| Wholesale price inflation rose by 11% in the 12 months to 7 June, up from the previous week's 8.75%. The inflation rate is now at its highest since 1995. | |
| Inflation is being driven higher by the rising cost of fuel and food, and is well above the government's target of between 5% and 5.5%. | Inflation is being driven higher by the rising cost of fuel and food, and is well above the government's target of between 5% and 5.5%. |
| The jump took many analysts by surprise and further interest rate rises are now expected. | |
| Last week, India's central bank raised short-term borrowing rates from 7.75% to 8%. | |
| The unexpected rate increase was the first since March 2007. | |
| The Reserve Bank of India is keen to address spiralling inflation. | |
| But there are concerns that interest rate rises will not do anything to curb rising energy prices, which saw India recently increase fuel subsidies. | |
| The rises threaten to hit India's poor the hardest and sparked protests in many parts of the country from consumers and transport operators. | |
| India imports nearly 75% of its crude oil requirements but subsidises the cost of domestic fuel products. | |
| The problem is worrying for the governing party, which is facing elections in a number of states this year. |