Retail inflation in August rises to 4.8%, wholesale print up 9.9%
India's retail inflation reached 4.8% in August, its highest level since January. Wholesale inflation also climbed to 9.9%, driven by fuel and manufactured goods. Food inflation increased to 6%, with rural areas experiencing higher price pressures. Economists anticipate further inflation and potential interest rate hikes by the Reserve Bank of India. The central bank's next monetary policy…
India's inflation rates surged in August, with retail inflation climbing to 4.8%, its highest level since the revised Consumer Price Index (CPI) series began in January, and wholesale inflation reaching 9.9%, prompting speculation of a potential interest rate increase by the Reserve Bank of India (RBI). This marks the third straight month retail inflation exceeded the central bank's 4% target, largely due to rising food prices.
The CPI, now using 2024 as its base year, showed a 4.5% increase in July, with wholesale inflation inching up to 9.9% in August from 9.8% in July, mainly due to increased fuel, power, and manufactured goods prices. Food inflation jumped to 6% annually in August, driven by surges in prices for silver jewelry (107.1%), ginger (73.8%), onions (48.3%), garlic (43.6%), and gold, diamond, and platinum jewelry (35.5%).
Economists anticipate retail inflation could surpass 5% in the coming months, potentially leading to an interest rate hike by the RBI before year-end. The RBI Monetary Policy Committee is set to meet on October 5-7, with economists suggesting a 50-75 basis points rate increase is plausible, with the likelihood of action in October growing.
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- Retail inflation surges to 8-month high of 4.8% in August timesofindia.indiatimes.com
