India's retail inflation climbed to 5.54% in September from 4.83% in August, government data showed on Monday. This jump happened because food prices got expensive. The figure is now near the top of the Reserve Bank of India's tolerance band. Many experts feel this rise could lead to more rate hikes.
India's retail inflation rose to 5.54% in September from 4.83% in August, driven mainly by higher food prices, government data showed. Details here.
India's retail inflation climbed to 5.54% in September, driven mainly by a rise in prices of food items, according to government data released on Monday.
The figure is approaching the upper end of the Reserve Bank of India's (RBI) 2%-6% tolerance band, strengthening the case for another rate hike as the US-Iran conflict and weak monsoon-led price pressures ripple through the economy.
The Consumer Price Index (CPI)-based inflation rate stood at 4.83% in August.
The RBI joined its global peers last week to raise its benchmark repo rate by 25 basis points to 5.5% for the first time in nearly four years, citing evidence of elevated inflation expectations and broadening of price pressure.
The central bank last raised rates in February 2023.