The revision in the June figure by 4 points pushed April inflation to the highest in a year or so, to 11.23%. The revisions are scary – it could mean we are currently seeing significantly higher inflation that we can see. Data for June will get revised in September.
With all these data points – inflation, bank credit growth, IIP - it’s very likely RBI will raise rates on Jul 27. Repo is currently just 5.25%. In June 2008 repo was at 8.5% and even went to 9%. There is a lot of room.