(Reuters) – India’s annual retail inflation accelerated to 5.49% in September from 3.65% a month ago, government data showed on Monday.
A Reuters poll of 48 economists had forecast retail inflation at 5.04%.
COMMENTARY:
GARIMA KAPOOR, ECONOMIST, INSTITUTIONAL EQUITIES, ELARA SECURITIES, MUMBAI
“September CPI inflation rose to (a) 9-month high as the favourable base effect waned off and food prices rose sharply amid supply chain disruptions led by heavy rains and imposition of import duties on edible oil.”
“Hereon, as impact of war premium of oil reduces and domestic demand conditions soften, and kharif output reaches market, the upside risks to inflation should remain capped notwithstanding the volatility in food prices.”
“We expect the Monetary Policy Committee to embark on (a) policy-easing cycle starting December.”
(Reporting by Nishit Navin; Compiled by Dhanya Skariachan; Editing by Shilpi Majumdar)
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