In September, India's consumer price inflation exceeded expectations, reaching its highest point in nine months due to escalating food costs, according to data released by the National Statistical Office on Monday.
The consumer price index rose by 5.49 percent annually in September, up from the 3.65 percent increase in August. This surpassed the anticipated rate of 5.0 percent. It represents the highest inflation rate since December 2023, when prices increased by 5.69 percent.
Despite this rise, inflation remains within the Reserve Bank of India's target range of 2-6 percent. The increase was attributed to the high base effect and adverse weather conditions, as noted by the NSO.
The data indicated a sharp acceleration in food price inflation, which climbed to 9.24 percent from August's 5.66 percent. Additionally, housing inflation increased to 2.78 percent from 2.66 percent, while inflation related to electricity jumped to 5.45 percent from 4.91 percent.
Month-over-month, consumer prices overall went up by 0.62 percent, with food prices rising by 1.2 percent.
In its October monetary policy meeting, the Reserve Bank of India decided to maintain the interest rate for the tenth consecutive meeting, shifting its monetary policy stance to neutral. This move sets the stage for the first interest rate cut in four years, as inflation is projected to decrease. The bank has maintained its inflation forecast for 2024-25 at 4.5 percent.
