CPI Inflation Rises To Five-Month High Of 7.41% In September

India’s retail inflation saw an uptick led by base effect and a rise in food prices.

The Consumer Price Index inflation rose to 7.41% in September from 7% in August, according to data released by the Ministry of Statistics and Programme Implementation on Wednesday.

A Bloomberg poll of 36 economists had estimated a reading of 7.36%.

Inflation in food and beverages was at 8.41% against 7.6% in August.

Headline inflation remains above the Reserve Bank of India’s upper target for the ninth straight month. Breach of the target for three straight quarters requires the central bank to write a letter to the government explaining the failure.

To quell inflation, the Monetary Policy Committee has raised the policy repo rate to 5.9% so far.