Reuters poll sees India October inflation near RBI target on food costs
In short
India’s consumer inflation is expected to rise in October, according to a Reuters poll cited in the report. Economists expect food inflation to reach 8.20%, and the Reserve Bank of India sees inflation averaging 5.2% for the current financial year. Higher global food prices and input costs are adding pressure.
What the reporting says
India’s consumer inflation is projected to rise in October, with a Reuters poll cited by the publisher saying food prices are driving the increase. Economists expect food inflation at 8.20%, while the Reserve Bank of India is seen forecasting 5.2% average inflation for the current financial year. The report said higher global food prices and input costs are adding pressure, and a rate hike is likely at the central bank’s upcoming policy meeting.
Why it matters
The Reuters poll points to higher October inflation in India, mainly because of food prices, with economists expecting food inflation at 8.20%. The report also says the RBI expects average inflation of 5.2% for the current financial year. If inflation stays elevated, it could affect household spending and the central bank’s policy move at its next meeting.