India Inflation Climbs To 5.49%, Highest In 9 Months

(RTTNews) - India's consumer price inflation accelerated more than expected in September to the highest level in nine months amid rising food costs, data from the National Statistical Office revealed Monday.

Consumer prices surged 5.49 percent on a yearly basis in September, faster than the 3.65 percent rise seen in August. The expected rate was 5.0 percent.

Further, this was the highest inflation rate since December 2023, when prices had risen 5.69 percent. 

Nonetheless, consumer price inflation continued to remain within the lower band of the 2-6 percent target.

The increase in inflation was due to the high base effect and weather conditions, the NSO said.

Data showed that food price inflation accelerated to 9.24 percent from 5.66 percent a month ago. The housing inflation rate also rose to 2.78 percent from 2.66 percent. Similarly, the inflation based on electricity quickened to 5.45 percent from 4.91 percent.

Month-on-month, overall consumer prices moved up 0.62, while food prices grew 1.2 percent.

At the October monetary policy meeting, the Reserve Bank of India maintained its interest rate for the tenth straight meeting and shifted its monetary policy stance to neutral, paving the way for the first interest rate cut in four years as inflation is expected to moderate. The bank had kept its inflation outlook for 2024-25 at 4.5 percent.