India's annual inflation rate heated up to 6.1% in August from a year earlier, surprising economists who had projected a slight decline from July's figure. The new number, fueled by rising import costs due to the falling rupee, may complicate matters for the new central bank leadership. "Monetary tightening can't be reversed until we start seeing a consistent decline in inflationary pressures," said Rupa Rege Nitsure, Bank of Baroda economist in Mumbai. "India has entered a stagflationary phase."
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