Retail inflation jumps to 2-year high of 6.09% in October, breaches RBI's upper tolerance limit
· Business · Times of India, India Today, Business Standard
Retail inflation accelerated to 6.09% in October from 5.54% in September, crossing the Reserve Bank of India's upper tolerance limit of 6% for the first time in two years. Consumer Price Index inflation for October soared to 6.9%, while rural inflation reached 6.63% and urban inflation was 5.41%. Food inflation, measured by the Consumer Food Price Index, rose to 8.94% year-on-year, with onion prices surging 116.22%, garlic 60.74%, silver jewellery 52.39%, ginger 48.32%, and lemon 47.30%. The October figures will be a key input ahead of the RBI's monetary policy committee meeting scheduled for December 2-4.
Why it matters
The breach of the RBI's 6% upper limit raises the likelihood of another rate hike, which will increase borrowing costs for consumers and businesses, and higher food prices continue to strain household budgets across rural and urban areas.
Read the original report — Times of India
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