India’s September retail inflation accelerates at its fastest pace in 9-months

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 (Oct 14).

Annual retail inflation was at 5.49 per cent in September, higher than 3.65 per cent in August, and economists’ forecast of 5.04 per cent. The print was the highest since December 2023, when retail inflation was at 5.69 per cent.

The central bank sees inflation easing after a few months of higher readings and expects it to average 4.5 per cent in 2024-2025, 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 per cent on year compared to a 5.66 per cent rise in August.

Vegetable prices rose 36 per cent year on year in September against a 10.71 per cent increase year-on-year in August. REUTERS