August retail inflation rises to 20-month high of 4.8%
Retail inflation measured by the Consumer Price Index (CPI) rose to a 20-month high of 4.8% in August, driven by rising food prices. Economists said the sharper-than-expected reading raises the likelihood that the Reserve Bank of India will hike its policy repo rate at the October review, marking a shift in expectations for monetary policy.
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CPI inflation and the RBI's rate response are core economy topics for prelims and interviews.
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- August CPI inflation rose to 4.8%, a 20-month high.
- The rise was driven mainly by higher food prices.
- Economists see a raised chance of an RBI repo rate hike in October.
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