August retail inflation raises chances of RBI rate hike in October, say economists
Retail inflation measured by the Consumer Price Index rose to a 20-month high of 4.8% in August, driven mainly by rising food prices. Economists said the reading raises the chances of a Reserve Bank of India rate hike at its October review, signalling a shift in the monetary-policy outlook.
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CPI print and its bearing on RBI monetary policy — core banking and economy material.
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- August CPI inflation rose to 4.8%, a 20-month high
- The increase was driven mainly by rising food prices
- Economists see higher chances of an RBI rate hike in October
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