Indian Rupee: RBI seen keeping hike option open – DBS
DBS Group Research anticipates India’s September inflation to rise to 5.7% year-on-year from 4.8%, driven by broad-based food price gains and higher non-food fuel costs. Core inflation is expected to tick up as uneven monsoon conditions and elevated Oil prices add pressure, leading DBS to expect the RBI to keep the door open for a possible rate hike in December 2026.
DBS Group Research predicts India's September inflation rate to climb to 5.7% year-on-year, up from 4.8%, as broad-based food price increases and higher fuel costs contribute to the rise. Core inflation is projected to increase due to uneven monsoon conditions and elevated oil prices, prompting DBS to anticipate the RBI's potential December 2026 rate hike.
September inflation may intensify to 5.7% year-on-year, partly influenced by base effects, from 4.8% in the preceding month. Food sectors continue to experience gains, with pressures expanding to encompass perishable items, edible oils, rice, pulses, and sugar. Elevated headline figures have the RBI considering another rate hike in December 2026.
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