India's October Retail Inflation Quickens to 6.09% to Breach RBI's Tolerance Ceiling
Food prices and a weak base effect pushed inflation above the Reserve Bank of India’s ceiling, increasing expectations for another rate hike.
- On Thursday, India's retail inflation accelerated to 6.09% in October, breaching the Reserve Bank of India's 6% upper tolerance limit for the first time in two years, according to data released by the Ministry of Statistics and Programme Implementation.
- This marks the 12th consecutive month of rising consumer prices, driven by a broad-based increase in food prices. Food inflation climbed to 8.94% in October from 7.74% in September, with onion prices surging to 116.22%.
- Rural inflation increased to 6.63% in October from 6.08% in September, while urban inflation rose to 5.41% from 4.88%. Both readings exceeded the 5.93% median estimate from a Reuters poll conducted last month.
- Economists widely expect the Monetary Policy Committee to raise the policy repo rate by another 25 basis points at its December 2-4 meeting, as inflation now exceeds the RBI's tolerance band.
- Price pressures are expected to persist in coming months, with global oil prices remaining nearly 40% higher than pre-war levels. The central bank anticipates inflation will average 6% through December, presenting ongoing challenges to economic stability.
18 Articles
18 Articles
Retail Inflation In October: In the month of October, the inflation rate in the country has increased at a rocket speed and now the retail inflation has also crossed the limit set by RBI.
India Retail Inflation Jumps To 6.09% In October, Breaches RBI's 6% Tolerance Limit
India's retail inflation climbed sharply to 6.09% in October, crossing the Reserve Bank of India's (RBI) upper tolerance limit of 6% for the first time under the revised Consumer Price Index (CPI) series, as rising food prices increased the cost of
India’s Inflation Accelerates, Keeping Rate-Hike Pressure on RBI
India’s inflation accelerated to its highest level in two years in October, breaching the top of the Reserve Bank’s 2%-6% tolerance band and adding pressure on policymakers to raise interest rates further.
India Inflation Rises To 6.09% In October, Highest In 2 Years
India's consumer price inflation rose more than expected in October to the highest level in two years, heightening expectations for further interest rate hikes. Consumer price inflation rose to 6.09 percent from 5.54 percent in the previous month, surpassing economist expectations of 5.93 percent. The October reading marks the highest level in two years and remains above the RBI's 2 to 6 percent.
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