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LATEST NEWS UPDATES | Inflation Likely Hit Five-Month High in September on Food Prices: Reuters Poll -Arsh Tushar Mogre

Inflation Likely Hit Five-Month High in September on Food Prices: Reuters Poll -Arsh Tushar Mogre

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published Published on Oct 10, 2022   modified Modified on Oct 11, 2022

-TheWire.in

A Reuters poll suggested inflation rose to an annual 7.3% in September from 7% in the previous month. If realised, that would be the highest since May 2022.

Bengaluru: India‘s retail inflation accelerated to a five month high of 7.3% in September due to surging food prices, staying well above the Reserve Bank of India‘s (RBI) upper tolerance band for a ninth month, a Reuters poll found.

Fueled by erratic rainfall and supply shocks from Russia’s invasion of Ukraine, prices of daily consumables like cereals and vegetables which form the largest category in the inflation basket have climbed over the past two years.

Already reeling from COVID-19 pandemic-induced economic shocks, India‘s poor and middle classes will be further hit by the increases as they spend a large chunk of income on food.

The October 3-7 Reuters poll of 47 economists suggested inflation – as measured by the Consumer Price Index – rose to an annual 7.3% in September from 7% in the previous month. If realised, that would be the highest since May 2022.

Forecasts for the data, due at 1200 GMT on October 12, ranged between 6.6% and 7.8%. Some 91% of economists, 43 of 47, expected inflation to be 7% or higher, suggesting the bias was for prices to go up further.

“There is a strong pressure from food that is playing out. What is even more worrying is the cereals and pulses inflation which has remained low for quite some time, will rise at an unprecedented pace,” said Dharmakirti Joshi, chief economist at Crisil.

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TheWire.in, 10 October, 2022, https://thewire.in/economy/inflation-likely-hit-five-month-high-in-september-on-food-prices-reuters-poll


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