NEW DELHI (Reuters) -India’s retail inflation in September accelerates at its fastest pace in nine months, due to higher food prices, according to government data released on Monday.
Annual retail inflation was at 5.49% in September, higher than 3.65% in August, and economists’ forecast of 5.04%. The print was the highest since December 2023, when retail inflation was at 5.69%.
The central bank sees inflation easing after a few months of higher readings and expects it to average 4.5% in 2024-25, it said last week, changing its monetary policy stance to neutral and opening the door to rate cuts.
Food inflation, however, remained high.
Prices of food, which account for nearly half of the consumption basket, rose 9.24% on-year compared to a 5.66% rise in August.
Vegetable prices rose 36% year-on-year in September against a 10.71% increase year-on-year in August.
(Reporting by Nikunj Ohri; Editing by Janane Venkatraman)
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