India's Retail Inflation Rises to 4.8% in August, Marking Tenth Consecutive Month of Increase
India’s consumer price inflation increased to 4.82% in August from 4.45% the previous month, marking its tenth consecutive rise and adding pressure on the central bank to consider rate hikes. The headline inflation figure exceeded economists' expectations slightly at 4.80%. Food inflation climbed to 5.95%, while transport-related costs surged sharply—goods transport rose over 14%, and personal transport increased by more than 7%. Despite rising prices, India's economic growth for the June quarter was stronger-than-expected at 7.8%. However, analysts predict a slowdown in the second half of the year due to factors like an elevated base effect, reduced public capital expenditure, and El Niño-related disruptions affecting food supplies. The Reserve Bank of India (RBI) expects headline inflation to reach 5% by March 2027 but has kept interest rates unchanged for now.
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