India's consumer price inflation climbed to a 20‑month high of 4.82% in August, surpassing the Reserve Bank of India's 4% midpoint target for the third month in a row. The persistent price pressure has revived market expectations of an early monetary policy tightening.
India's retail inflation rose to 4.82% in August, pushing the rate above the Reserve Bank of India's 4% midpoint target for the third consecutive month. The surge, fueled by higher food and fuel prices, could lead the central bank to reassess its monetary stance.
India's wholesale price inflation in August edged close to a double‑digit rise, prompting concerns that the pace could accelerate in September. The Reserve Bank of India is closely monitoring the trend as it exceeds its retail inflation target range.
On 7 September the Reserve Bank of India held an overnight cash withdrawal auction after a lackluster 30‑day VRRR auction, with banks parking a total of ₹3.53 lakh crore. The stronger response in the overnight auction suggests banks favour shorter liquidity‑parking periods.
