RBI's September Bulletin highlights food price volatility risk amid sub-4% inflation, with GDP growth supported by domestic consumption & investment.

The Reserve Bank of India's September Bulletin indicates that while consumer price index inflation remained below 4% in August, food price volatility poses a risk. Headline inflation slightly increased to 3.7%, primarily due to base effects. Despite a slowing global economy, strong domestic consumption and investment support GDP growth. The RBI anticipates faster household consumption in the latter half of the fiscal year as inflation eases and rural demand recovers.