August retail inflation hits 20-month high of 4.8%, raising RBI rate-hike odds
Retail inflation measured by the Consumer Price Index rose to a 20-month high of 4.8% in August, driven up by rising food prices. Economists said the reading raises the chances of a Reserve Bank of India rate hike at its October review. The uptick reverses the earlier disinflation trend and puts the Monetary Policy Committee under pressure to respond.
Nabka Insight
CPI touching a 20-month high directly feeds monetary-policy questions on inflation targeting and the RBI stance.
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- August CPI retail inflation rose to a 20-month high of 4.8%.
- Rising food prices were the main driver.
- Economists see higher chances of an RBI rate hike in October.
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