August retail (CPI) inflation rises to 4.8%
India's retail inflation, measured by the Consumer Price Index (CPI), climbed to 4.8% in August — a 20-month high — driven mainly by rising food prices. Economists said the increase raises the likelihood of the Reserve Bank of India opting for an interest-rate hike at its October review. Food prices were the principal driver of the acceleration.
Nabka Insight
The CPI print and the resulting rate-hike expectation are core banking/economy exam material.
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- August retail (CPI) inflation was 4.8%, a 20-month high.
- Rising food prices were the main driver.
- Economists see higher chances of an RBI rate hike in October.
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