India’s annual consumer inflation rose to 6.09% in October, above the 5.93% expectation and beyond the Reserve Bank of India’s 6% upper tolerance limit. Food inflation accelerated to 8.94% from 7.74% the previous month, driven by higher onion, garlic, and ginger prices; rural food inflation reached 9.09%. GIFT Nifty futures fell 64 points, while the benchmark 2036 bond yield rose to 7.3113%. Markets priced in a 69% chance of a 25-basis-point rate hike at the next meeting, with expectations reinforced for another hike in early December; the US-Iran war also contributed to inflation through higher crude oil and fertilizer costs.
Food inflation accelerated to 8.94%, while India’s 10-year bond yield held at 7.25% after the data. The monetary policy meeting is scheduled for December.
Read the full storyFood inflation accelerated to 8.94%, while the price reading exceeded a Reuters poll forecast ahead of the monetary policy meeting scheduled for December.
Inflation accelerated from 5.54% in September, with the increase in rural areas outpacing urban areas and onion and garlic recording sharp gains.