India’s consumer price inflation accelerated to 4.82% in August, up from 4.45% in July, according to data released Monday. The increase adds to mounting pressure on the Reserve Bank of India to raise benchmark interest rates.
The headline figure slightly exceeded expectations from economists polled by Reuters, who had projected a rise to 4.80%. The reading marks the tenth consecutive month of increasing inflation for the world’s fastest-growing major economy, based on LSEG data.
The central bank has maintained a forecast of 5% headline inflation for the financial year ending March 2027, with core inflation expected to remain at 4.3%. However, the persistent upward trajectory in August suggests external factors, including energy costs linked to regional geopolitical tensions and climate phenomena such as El Niño, continue to influence price dynamics.
Does anyone else feel like inflation is just a number to the government? Prices aren’t going down anytime soon.
Ten months in a row? Something is fundamentally broken here. Interest rates won’t fix supply chain issues.
Surprised it only hit 4.82% given the geopolitical tensions. That’s surprisingly resilient for such a volatile period.
El Niño is really driving food prices up. I wonder if the RBI will wait until next year to act on this.
Another hike? My groceries are already painful enough. Hope the RBI considers the common man this time.