India economy faces threat as its inflation spikes to 15-month high

Mumbai

INDIA'S benchmark 10-year bond hit its lowest in more than 16 months on Wednesday, as investors saw surging inflation as a potential threat to a still-struggling economy and a daunting challenge to policymakers.

The 10-year bond yield rose as much as 6 basis points to 7.26 per cent, the highest since July 2016, after data late on Tuesday showed annual inflation spiking to a 15-month high of 4.88 per cent in November, way above expectations.