India's retail inflation jumped to 5.54 percent in September, crossing the 5 percent mark for the first time in the new Consumer Price Index (CPI) series,
as a sharp acceleration in food prices pushed up household costs. Inflation has increased from 4.83 percent in August, and this marks the sixth consecutive monthly rise in the annual inflation rate since March as per data released. The increase also took inflation further above the Reserve Bank of India's 4 percent target, although it remained within the central bank's tolerance band of 2-6 percent. Food inflation surged to 7.74 percent in September from 5.97 percent in August. Economist Mitali Nikore told Times Now Digital, "India’s inflation story is not just about the 5.54% headline; it is about how long external price pressures take to ease. The RBI has already embarked on a calibrated tightening cycle, and the impact should begin to show in the coming quarter. The US brokered Russia-Ukraine energy ceasefire could provide additional relief by easing crude oil prices and imported inflationary pressures. The critical question now is whether these two forces can bring inflation back under control without undermining growth. For the RBI, the challenge is to stay ahead of inflation without over-tightening the economy."
