August Inflation Surge Puts India’s October Rate Decision In Focus

Prices in India rose faster in August than in July.

The main measure of household inflation reached 4.82%, its highest level in 20 months.

Food became more expensive, especially items such as onions, sugar and cereals.

Fuel and transport costs also added to the increase.

Prices charged by wholesalers and producers rose as well.

Prices for some goods outside food and fuel also increased, suggesting that inflation may be spreading.

This has made people pay close attention to the Reserve Bank of India’s October meeting.

Some economists think the bank may raise interest rates to slow price increases.

Other considerations include India’s strong economic growth and inflation that is still inside the bank’s permitted range.