August retail (CPI) inflation hits 20-month high of 4.8%
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 sharper-than-expected increase raises the likelihood that the Reserve Bank of India will hike the policy rate at its October review, marking a shift away from the recent easing cycle towards a tighter monetary stance.
Nabka Insight
Core economic indicator; CPI is the RBI's inflation-targeting anchor and drives repo-rate decisions.
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- August CPI inflation: 4.8%, a 20-month high.
- Main driver: rising food prices.
- Economists expect a possible RBI rate hike in October.
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