Economy

India’s CPI Inflation Jumps To 5.49% In September Due To Weather And High Base Effect

India’s Consumer Price Index (CPI) inflation rose to 5.49% in September, up from 3.65% in August, driven by a high base effect and erratic weather conditions, the government reported on Monday. The inflation rate for rural and urban areas stood at 5.87% and 5.05%, respectively.

Surge in Food and Housing Prices

The Consumer Food Price Index (CFPI) showed inflation at 9.24% for September. Urban housing inflation increased to 2.78%, up from 2.66% in August. Meanwhile, the electricity inflation rate for September was reported at 5.45%.

The Ministry of Statistics noted a decline in inflation for pulses, spices, meat, fish, and sugar.

RBI to Maintain Cautious Approach

Experts attributed the rise in inflation to weather disruptions. Apurva Sheth of SAMCO Securities said the RBI likely anticipated this trend, which explains its decision to hold rates steady in the recent monetary policy. Analysts expect inflation to average around 4.5% for FY25, with the RBI taking a cautious stance before making any rate cuts, noted Arsh Mogre from Prabhudas Lilladher.

Also Read: India Set To Outpace US And China In Economic Growth, Says USISPF Chairman John Chambers

Ajaypal Choudhary

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