The retail inflation rate likely rose above the Reserve Bank of India’s medium-term 5 per cent target in November as food prices climbed, leaving little room for more interest rate cuts, a Reuters poll found.
Consumer prices rose 5.4 per cent last month, according to the survey of 21 economists, which would mark an acceleration from 5.0 per cent in October. The data will be released on December 14.
Falling commodity prices have fueled a global disinflationary trend and pushed Indian inflation down, giving the RBI room to ease monetary policy four times this year, but rate cuts could now be less forthcoming.
[“source -pcworld”]