India’s retail inflation rises to 5.54% in September
publishers 30articles 38first reported 12 Oct, 10:49 UTCdeveloping since 12 Oct · 17 editions
India’s annual retail inflation accelerated to 5.54% in September from 4.82% in August, exceeding the 5.40% estimate in a Reuters poll and reaching a 22-month high, according to data cited by CNBC. Consumer-price growth has now risen for 11 consecutive months.
Food inflation climbed to 7.74% from 5.97% in August, with prices increasing faster in rural areas than in cities. Inflation in freight transport services reached 14.73%, while personal transport costs rose 7.46%, the Ministry of Statistics and Programme Implementation reported.
The increase adds pressure on the Reserve Bank of India after it raised interest rates earlier in October for the first time since 2023. The central bank said near-term policy choices were either another increase or a pause, with rate cuts off the table under current conditions. HSBC analysts expect another increase in December.
Higher energy prices and supply disruption linked to the war in Iran have contributed to inflation concerns because India imports nearly 85% of its fuel. Food prices also face pressure from weak rainfall: the June-to-September season was the driest in more than a decade, leaving parts of several major agricultural states in extreme drought.
The RBI forecasts headline inflation of 5.2% for the financial year ending March 2027, above its 4% medium-term target. It also raised its economic growth estimate to 7.1% while warning about geopolitical tensions, tighter financial conditions and elevated commodity prices.
HOW THIS STORY WAS MADE
Written from 8 articles, 2 with the publisher's own text; 8 independent newsrooms once syndicated copies count as one; this version written 66 h after the record first saw the story; the editor kept it as written.
- Publishers
- 30
- Source articles
- 38
- Given to the writer
- 8, 2 with the article's own text
- Independent newsrooms
- 8
- This version written
- 66 h after the record first saw the story
- Second model (editor)
- kept as written
- Publication gate
- passed
- Human review
- none
WHAT THE EDITOR DID
The second model checked the writer's draft against the same sources and published it as written.
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