Inflation in India rises to 5.49%, highest in 9 months | 14.10.24

(RTTNews) – India’s consumer price inflation accelerated more than expected in September to a nine-month high amid rising food costs, National Bureau of Statistics data showed on Monday.

Consumer prices rose 5.49 percent year on year in September, faster than the 3.65 percent increase in August. The expected percentage was 5.0 percent.

Moreover, this was the highest inflation rate since December 2023, when prices rose by 5.69 percent.

Nevertheless, consumer price inflation remained within the lower bound of the 2-6 percent target.

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

Data showed food price inflation accelerated to 9.24 percent from 5.66 percent a month ago. Housing inflation also rose from 2.66 percent to 2.78 percent. Similarly, electricity-based inflation accelerated from 4.91 percent to 5.45 percent.

Month-on-month, total consumer prices rose by 0.62, while food prices rose by 1.2 percent.

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