India’s retail inflation is expected to surge to 6.15% in October, exceeding the Reserve Bank of India’s (RBI) tolerance threshold of 6%. The increase is attributed to persistent food price pressures and the waning of favorable base effects from the previous year. The Consumer Price Index (CPI) data for October is expected to show a significant increase, with food inflation remaining a key driver of price pressures. The RBI has held the repo rate steady at 6.5% for the tenth consecutive time, and is expected to keep policy rates stable over the coming quarter. A report by Union Bank of India suggests that the magnitude of the increase in October’s inflation might raise concerns, particularly as November’s figures are also tracking at elevated levels. The bank maintains its forecast of unchanged interest rates in December’s monetary policy meeting, with a modest 50 basis points rate cut cycle predicted to begin in February 2025.
UBI Report predicts retail inflation will surpass 6% in October.
by newsworm | Nov 10, 2024 | Banking, RBI, Union Bank of India