India retail inflation hits 6.09 per cent in October
The Consumer Price Index breached the Reserve Bank of India's upper tolerance limit of 6 per cent due to rising food costs.
India's retail inflation rose to 6.09 per cent in October, crossing the Reserve Bank of India's (RBI) upper tolerance limit of 6 per cent, according to Moneycontrol. This figure, measured by the Consumer Price Index (CPI), increased from 5.54 per cent in September.
Food inflation, measured by the Consumer Food Price Index (CFPI), accelerated to 8.94 per cent in October from 7.74 per cent in September. Significant price increases were recorded for onions, which surged 116.22 per cent year-on-year, garlic at 60.74 per cent, and lemons at 47.30 per cent.
Inflationary pressures were more pronounced in rural areas, where the rate reached 6.63 per cent, compared to 5.41 per cent in urban areas. In Tamil Nadu, headline inflation was recorded at 7.29 per cent, while Telangana and Andhra Pradesh saw rates of 7.26 per cent and 7.25 per cent respectively.
ICRA Chief Economist Aditi Nayar stated that the continuous rise in food and beverage costs was a primary factor in the higher headline number. She noted that price pressures expanded across 11 of the 12 CPI divisions.
Economists suggest the central bank may increase interest rates during its December meeting. Upasna Bhardwaj, Chief Economist at Kotak Mahindra Bank, said the bank expects the RBI to hike rates by an additional 50 bps in FY27 due to elevated food prices and other risks.