Inflation seen hitting RBI's 6% ceiling in October, putting rate policy in focus
Rising food prices and an unfavourable base effect are expected to push inflation to the RBI’s upper tolerance limit of 6% for the first time in two years.
India's retail inflation is expected to reach 6% in October, a two-year high that may force the Reserve Bank of India (RBI) to maintain high interest rates and potentially raise them further in December. According to a Mint poll of 15 economists, the Consumer Price Index is forecasted to increase to 6%, up from 5.5% in September.
This would be the first time inflation has surpassed the RBI's 6% ceiling since October 2024. Economists' predictions range from 5.9% to 6.2%, with official figures due on November 12. Rising food prices and unfavorable base effects are primarily driving the inflation surge. The central bank recently raised the benchmark repo rate by 25 basis points in its October policy review.
Written by urgent.news from Live Mint's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
