India's annual inflation seen at 5.36%

Inflation rose to the highest reading since May 2005 in the week that ended on June 10.

India's wholesale price inflation is forecast at 5.36 per cent for the next 12 months, higher than the previous week's 5.24 per cent, a poll of 10 analysts showed on Thursday.

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Inflation rose to the highest reading since May 2005 in the week that ended on June 10. The government would release the inflation data on Friday.

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

The Reserve Bank of India (RBI) raised its reverse repo rate by 25 basis points to 5.75 per cent on June 8 on the back of inflationary pressures and global firming of rates.