October Retail Inflation Likely Near 6-Month Low, Within RBI's Tolerance Band

The median forecast from Reuters poll of 43 economists taken Nov. 8-9 predicted inflation as measured by the consumer price index (CPI) edged down to 4.32 per cent from 4.35 per cent in September.

The country's retail inflation likely hovered near a six-month low in October as higher food and fuel prices were offset by an overall favourable comparison with prices one year ago, leaving the central bank room for now to leave interest rates steady.

The median forecast from Reuters poll of 43 economists taken Nov. 8-9 predicted inflation as measured by the consumer price index (CPI) edged down to 4.32 per cent from 4.35 per cent in September.

If realised, it would mark the fourth consecutive month inflation has been within the Reserve Bank of India's (RBI) tolerance band of two per cent-six per cent. The report will be released on Nov. 12.

There were a few estimates in the poll below the RBI's medium-term target of four per cent, with a range of 3.42 per cent-five per cent.