Suddenly, much of the Central Bank of India raised the refinancing rate by 50 bps up to 7.25% in response to ongoing concerns about accelerating inflation. In March, wholesale prices jumped to 9%, far exceeding the targets of the Bank. For comparison, the Chinese inflation is now 5.4%, although all admit that this estimate is much too low. If it was not a stiff upper price for diesel and gasoline in India, inflation could be much stronger. Indian Oil could not raise the price of petrol since June, and gasoline - from mid-January. The Indian economy is relatively well tolerate an aggressive tightening policy over the last year and falling purchasing power due to higher prices. Indian Central Bank expects economic slowdown in the second half of the year, while inflation remains the number one problem for Asia. For example, the finance minister of South Korea has promised that his Government was "struggling" to keep prices down.Mixed news from China. China's service sector is growing at full steam, which is reflected in the growth of the corresponding PMI index for the previous month to 62.5 from 60.2 in March. For comparison, the manufacturing indicator fell to 52.9 in April, against 53.4 a month earlier. Separately, a study Soufun Holdings, showed that housing prices in China are growing continuously for eight months in a row.
