In New Delhi, inflation continues to soar. In September, the rise in prices reached its peak for seven months, making the government's attempt to reconcile monetary policy and growth even more difficult.
The Wholesale Price Index, the main indicator of Indian inflation, grew by 6,46% over the previous year. In August it had recorded a +6,1%.
The price race therefore continues to be a sword of Damocles for Indian politicians. An obstacle that prevents the executive from adopting aggressive measures to revitalize an emerging economy that is now slowing down and suffering from a massive flight of capital.
According to analysts, the Central Bank of India could react by raising interest rates again, having already raised them from 7,25% to 7,5%.
The data comes after the subcontinent, Asia's third largest economy, began to slow down dramatically. The country's economy grew, in 2012-2013, at an annual rate of 5%, the lowest rate in the last 10 years. A slowdown that shows no signs of stopping, with the decline of the manufacturing sector and foreign investments.
