Inflation Seen Hitting RBI's 6% Ceiling In October, Putting Rate Policy In Focus
(MENAFN- Live Mint) India's retail inflation is likely to hit 6% in October, a two-year high that would push the Reserve Bank of India (RBI) to keep interest rates elevated and possibly raise them again in December.
The Consumer Price Index is projected to rise 6%, from 5.5% in September, according to a Mint poll of 15 economists. If the forecast holds, inflation would breach the RBI's upper tolerance limit of 6% for the first time since October 2024. Economists' estimates range from 5.9% to 6.2%. Official data is scheduled to be released on 12 November. The increase is expected to be driven primarily by food prices and an unfavourable base effect.
Elevated oil and commodity prices are adding to inflationary pressures, potentially raising the prospect of another rate increase in December. The central bank raised the benchmark repo rate by 25 basis points in its October policy review.
The Consumer Price Index is projected to rise 6%, from 5.5% in September, according to a Mint poll of 15 economists. If the forecast holds, inflation would breach the RBI's upper tolerance limit of 6% for the first time since October 2024. Economists' estimates range from 5.9% to 6.2%. Official data is scheduled to be released on 12 November. The increase is expected to be driven primarily by food prices and an unfavourable base effect.
Elevated oil and commodity prices are adding to inflationary pressures, potentially raising the prospect of another rate increase in December. The central bank raised the benchmark repo rate by 25 basis points in its October policy review.
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