August retail inflation raises chances of RBI rate hike in October, say economists
India's retail inflation, measured by the Consumer Price Index, climbed to a 20-month high of 4.8% in August, pushed up by rising food prices. Economists say the sharper-than-expected reading raises the chance that the Reserve Bank of India will raise its policy rate at the October review, marking a shift after a prolonged easing phase.
Nabka Insight
A 20-month-high CPI print reshapes the RBI's October rate call.
Powered by AIKey facts
- August CPI inflation stood at 4.8%, a 20-month high.
- The rise was driven mainly by higher food prices.
- Economists see a stronger chance of an RBI rate hike in October.
Background
Relevant forBanking · SSC · State PSC · UPSC