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India's retail inflation rises to 5-month high of 7.41%, industrial activity contracts -Meghna Sen

-The Telegraph

Food inflation, which accounts for nearly half the CPI basket, soared 8.60% in September 2022 as against 7.62% in August

Driven by rising food prices, India's retail inflation accelerated to 7.41% in September, the fastest pace in five months, data released by the National Statistical Office (NSO) showed on Wednesday. The number stayed well above the Reserve Bank of India's (RBI) upper tolerance band for the ninth straight month. This is likely to pressure the RBI, which has raised its key repo rate by 190 basis points in four moves this year, to intensify its interest rates hikes.

Food inflation, which accounts for nearly half the CPI basket, soared 8.60% in September 2022 as against 7.62% in August.

Meanwhile, industrial growth, as measured by the Index of Industrial Production (IIP), contracted 0.8% in August as compared to 2.4% in July, according to the data released by the National Statistical Office (NSO).

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