Annual inflation at 4.96% on July 1

The wholesale price index rose 4.96% in the 12 months to July 1, higher than 4.84% a week earlier.

India's wholesale price index rose 4.96 per cent in the 12 months to July 1, higher than 4.84 per cent a week earlier, largely due to higher manufactured product prices, data showed on Friday.

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The figure was lower than 5.17 per cent forecast by a Reuters poll of analysts. The inflation rate was at 4.14 per cent during the corresponding week of the previous year.

The Reserve Bank of India raised the benchmark short-term reverse repo rate by 25 basis points to 5.75 per cent on June 8 in a surprise move which analysts said was aimed primarily at controlling inflation after local retail fuel prices rose.

The Indian government has also taken several measures such as cutting import duty on wheat to control rising prices.

The wholesale price index is more closely watched than the consumer price index, which is published monthly, because it has a higher number of products in its basket and is published weekly.