August retail inflation hits 20-month high of 4.8%
Retail inflation measured by the Consumer Price Index (CPI) rose to 4.8% in August, a 20-month high, driven mainly by rising food prices. Economists said the print raises the likelihood of the RBI's Monetary Policy Committee delivering a repo-rate hike at its October meeting, a possible shift toward a more restrictive monetary stance after a prolonged easing phase.
Nabka Insight
CPI is the RBI's inflation-targeting anchor; a 20-month high signals possible rate action.
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- August CPI inflation: 4.8%, a 20-month high.
- Rise driven mainly by higher food prices.
- Economists see an increased chance of an RBI rate hike in October.
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