Retail inflation rose to a four-month high of 3.5% in April, driven mainly by higher food prices and a rebound in gold and silver. Economists warn more inflation pressure could follow, even as expectations grow that the Reserve Bank of India will keep its policy rate unchanged. With inflation nearing the RBI’s target, rate hikes may take a breather for now.
India’s retail inflation inched up to 3.48% in April, driven mainly by firmer food prices. Food inflation rose to 4.20%, while personal care and miscellaneous goods saw the sharpest increases. Even with the uptick, inflation remains comfortably below the Reserve Bank of India’s 4% target, keeping the rate outlook relatively steady.
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