India Retail Inflation Rises to 5.54% in September on Food Price Jumps
· Business · CNBC, Times of India, Zee News
India's consumer price inflation climbed to 5.54% in September from 4.82% in August, driven by a sharp rise in food prices and transport costs. Food inflation accelerated to 7.74% in September compared to 5.97% the previous month, with rural areas experiencing faster price increases than urban centers. The Ministry of Statistics and Program Implementation reported that goods transport inflation rose 14.73%, while personal transport costs jumped 7.46%. The inflation print marked an 11-month consecutive rise and touched a 22-month high, coming in slightly above Reuters poll expectations of 5.40%. The Reserve Bank of India recently tightened monetary policy and indicated that further rate cuts remain off the table in the near term amid elevated global oil prices and Middle East supply concerns.
Why it matters
Accelerating inflation and elevated food prices squeeze consumer purchasing power and heighten pressure on the Reserve Bank of India to maintain tight monetary policy.
Read the original report — CNBC
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