August inflation at 9.78% y/y, says government

India's wholesale price index (WPI) rose an annual 9.78% in August, government data showed on Wednesday, reinforcing the possibility for another rate hike on Friday even as economic growth slows and global outlook weakens.

The figure was above the median forecast for a 9.6% rise in a Reuters poll and was higher than the annual rise of 9.22% in July. The WPI is more closely watched than the consumer price index (CPI) in India as it covers a higher number of products. The Reserve Bank of India (RBI) has raised interest rates 11 times since March 2010 to combat high inflation and is expected to tighten them further one last time before a pause. The RBI is expected to raise rates by another 25 basis points at its mid-quarter policy review on Friday.