{
  "id": 19753623,
  "title": "Uneven monsoons, El Nino pose upside risks to inflation; another RBI hike possible: Report",
  "url": "https://urgent.news/2026/11/13/uneven-monsoons-el-nino-pose-upside-risks-to-inflation-another-rbi",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-13T03:35:34.000Z",
  "source": {
    "name": "The Economic Times - Economy",
    "slug": "the-economic-times-economy",
    "url": "https://economictimes.indiatimes.com/news/economy/indicators/uneven-monsoons-el-nino-pose-upside-risks-to-inflation-another-rbi-hike-possible-report/articleshow/135788065.cms"
  },
  "original_language": "en",
  "account": "New Delhi, India: Uneven monsoon patterns and El Nino conditions could present upside risks to food inflation in the fiscal year 2027, prompting the Reserve Bank of India (RBI) to consider further interest rate hikes, according to a report from Nuvama Institutional Equities. While headline inflation is expected to remain elevated in the short term due to unfavorable base effects, it may gradually normalize during 2027 as these base effects subside and supply-side pressures ease.\n\nThe report notes that India's headline Consumer Price Index (CPI) inflation reached 6.1% year-on-year in October, up from 5.5% in September and marking a two-year high. This surge was primarily driven by food and beverage prices, which increased to 8.5% in October from 7.4% in September, largely due to uneven monsoons and an unfavorable base effect. Other key inflation indicators, such as restaurant services and clothing and footwear prices, also showed notable increases.\n\nNuvama emphasizes that the RBI's guidance suggests another interest rate hike is a distinct possibility if inflation risks persist. While underlying demand-side pressures appear relatively contained, the central bank may decide to tighten monetary policy further in response to these inflation risks.",
  "summary": "Uneven monsoons and the possibility of El Nino conditions could pose upside risks to food inflation in FY27, keeping the Reserve Bank of India (RBI) open to another interest rate hike despite expectations of gradual moderation in overall price pressures, according to a report by Nuvama Institutional Equities.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}