Inflation & Prices

India’s Surprise Inflation Pick-Up Gives RBI Reason to Hold

  • Central bank expects inflation to rebound again in September
  • The next monetary policy review is scheduled for Oct. 9

The Reserve Bank of India has left its benchmark interest rate unchanged for more than 18 months.

Photographer: Abeer Khan/Bloomberg
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India’s inflation unexpectedly accelerated in August, giving the central bank reason to stay on hold even though it remained below its 4% target for the second straight month.

The consumer price index rose 3.65% last month from a year earlier, data from Statistics Ministry showed Thursday, up from 3.54% in July and above the 3.47% median forecast in a Bloomberg survey of economists.