India's October consumer inflation likely nears top of RBI target on food costs: Reuters poll
India's consumer inflation is projected to rise in October, mainly driven by significant increases in food prices. Economists expect food inflation to reach 8.20%, reflecting ongoing market pressures. Rising global food prices and higher input costs contribute to the inflationary environment. The Reserve Bank of India anticipates inflation to average 5.2% for the current financial year. A rate…
India's consumer inflation is expected to reach near the upper limit of the Reserve Bank of India's 2% to 6% target range in October, according to a Reuters poll of economists. The primary driver of this acceleration is the sharp rise in food prices, which constitute nearly 40% of the consumer price index. Factors contributing to the hike in food costs include reduced supplies due to an uneven monsoon season and a nearly doubling of onion prices since the start of the year.
The median forecast from the poll, conducted between November 2-6, predicts annual inflation at 5.93% in October, up from 5.54% in September. However, projections for the data due on November 12 range from 5.50% to 6.60%. Nearly half of the polled economists anticipate inflation to be at or above 6% in October, the upper end of the RBI's target range.
Economists foresee core inflation, which excludes volatile food and fuel prices, at 4.45% in October. The upcoming December policy meeting of the RBI is expected to see a second consecutive rate hike to 5.75% based on the latest poll. The central bank may persist with its current rate-hike momentum.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
