Food Prices Spur Indian Inflation

Inflation in India rose more than expected in early February to a six month high on rising food prices. The wholesale price index hit 4.35% for the year up to 9 February, as the price of vegetables, fruit and lentils rose. Economists expect inflation to head higher still as last week''s rise in fuel prices starts to take effect. Inflation remains below the Indian central bank''s target rate of 5% but economists say it could breach that level in the near future.