Retail inflation hits 20-month high of 4.8% in August
Retail inflation measured by the Consumer Price Index rose to a 20-month high of 4.8% in August, driven largely by rising food prices. Economists said the jump raises the likelihood of the Reserve Bank of India opting for a rate hike at its October meeting. The reading pushes inflation further above the RBI's 4% medium-term target midpoint.
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CPI data and the RBI's likely policy response are staple economy questions.
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- August CPI inflation hit a 20-month high of 4.8%.
- Rising food prices were the main driver.
- Economists expect a possible RBI rate hike in October.
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