Union Bank of India predicts October inflation at 6.15%, exceeding RBI's 6% threshold due to rising food prices.

Union Bank of India predicts India's retail inflation will reach 6.15% in October, exceeding the Reserve Bank of India's 6% tolerance threshold. The surge is mainly due to rising food prices, particularly vegetables and edible oils. The RBI has maintained a 6.5% repo rate to control inflation. Despite the current spike, the bank expects rates to stabilize, with a potential 50 basis points cut starting in February 2025. Policymakers aim to keep retail inflation at 4%.

November 10, 2024
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