New Delhi, Nov. 15 -- Driven by elevated onion prices, India's retail inflation picked up in October to 4.62% from 3.99% a month ago, crossing the 4% medium term target of the central bank for the first time since July 2018.
A Bloomberg survey of 33 economists pegged retail inflation at 4.35% in October. Food inflation quickened to 7.89% in October from 5.11% a month ago.
However, the rise in inflation is unlikely to deter the Reserve Bank of India (RBI) from cutting policy rates in its December monetary policy review, with a set of macro-economic data pointing towards sharper than expected deceleration of the Indian economy. RBI has already cut policy rates five consecutive times, this year by a cumulative 135 basis points to 5.15%.
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