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India’s inflation rate for the month of April came in hotter than expected, with the wholesale price index rising 8.66% annually, according to Bloomberg. The rate slowed from the March number, which was revised up to a 9.1% annual rate.But the inflation situation could be about to get worse. Oil companies just announced their first increase in gasoline prices since January.
And while rate hikes have not been working to contain the country’s high inflation, more are certain to come in the short-term. Credit Suisse analyst Robert Prior-Wandesforde expects rate hikes of 0.75% by the end of 2011, and the economy to slow as a result.
India has hiked rates 9 times since March 2010.