NEW DELHI -- India's surging economy expanded at its fastest pace in more than a year, a surprising performance that increases the chances the central bank will raise interest rates in January to contain rising inflation.

Gross domestic product grew 7.9% from a year earlier in the July-September period, notching the swiftest pace of growth since the January-March quarter of 2008, the Central Statistical Organization said Monday. That translates into a 13.9% annualized pace from the previous quarter, according to HSBC calculations.

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