Annual inflation seen at 5.32 per cent

India's wholesale price inflation rate is forecast at 5.32 per cent for the 12 months to December 2, essentially steady from 5.30 per cent the previous week, a Reuters poll of 11 analysts showed on Thursday.

The government will release the inflation data at around noon on Friday. On November 29, the government cut the retail prices of petrol and diesel by 4.25 per cent and 3 per cent respectively, a move that was expected to lower headline inflation.Last Friday, the Reserve Bank of India announced an increase in its cash reserve ratio for banks of 50 basis points to cool inflationary pressures. The CRR will be increased in equal steps on Dec. 23 and Jan. 6.

Analysts have been concerned by recent steep revisions in inflation data almost two months after the provisional numbers were released. Last week, the government revised annual inflation for week ended Sept. 30 to 5.41 percent from 5.16 per cent.

The wholesale price index is more closely watched than the consumer price index (CPI) because it includes a higher number of products and is published weekly.