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Owned by Daily Thanthi GroupRetail inflation breaches RBI's upper tolerance band at 6.09 pc; rate hike likely next month
What's behind this
Retail inflation rose sharply to 6.09 per cent in October, breaching the Reserve Bank of India's upper tolerance limit of 6 per cent for the first time in two years and since October 2024, according to ministry data. The consumer‑price‑index based headline inflation was 5.54 per cent in September. Food prices drove the increase, with food inflation spiking to 8.94 per cent in October from 7.74 per cent the month before. The breach has led economists to expect the RBI to raise its policy rate next month.
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RSS excerpt
NEW DELHI: Retail inflation surged to 6.09 per cent in October, breaching the Reserve Bank's upper tolerance limit for the first time in two years and prompting economists to anticipate a policy rate hike by the RBI next month. The consumer price index (CPI) based retail inflation rose to 5.54 per…