CPI inflation likely at 4.8% in Oct: Poll
Bank of India, which recently stated that it will remain “extra vigilant" on inflation and reinforced its commitment to keep inflation below 4%. However, economists have warned of an increase in vegetable prices.
“We estimate that CPI inflation slowed further in October... but this reprieve is likely to be fleeting as onion prices are climbing.
Pressures from non-perishable food prices also persist," said Rahul Bajoria, economist at Barclays. Inflation has been driven primarily by high vegetable prices over the past few months, reaching a 15-month high in July.
Rising prices led the government to impose a ban on rice exports and raise duties on onion exports. According to Standard Chartered economists, inflation is forecast to remain below 5% till November, before rebounding to the 5% to 5.5% range for the rest of FY24.
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