Retail inflation (CPI) rate slightly picked up to 3.77 per cent in September, government data showed on Friday, driven by higher food and fuel prices and a depreciating rupee.
Analysts polled by Reuters had forecast September's annual increase in the consumer price index at 4.0 per cent, compared with August's 3.69 per cent.
Industrial production (IIP) grew by 4.3 per cent in August, down from 4.8 per cent in the year-ago month.
Analysts polled by Reuters had forecast September's annual increase in the consumer price index at 4.0 per cent, compared with August's 3.69 per cent.
"The story on food has been very much comfortable this year. So much so that it could help mitigate a lot of pain because of the rise in crude prices and a falling rupee,” said Tushar Arora, Senior Economist, Hdfc Bank.
“Going forward, the hike in minimum support prices (MSPs) is an upside risk to headline inflation. However, given that it will take time to expand the procurement capacity in the country, it is more of a risk for the next year and not FY19,” said Tushar Arora.
“Amid mixed set of indicators, we would keep a close watch on inflation expectations to second-guess the next move on rates from the RBI," he added.
"CPI inflation has started inching up despite a favourable base effect due to food prices and miscellaneous goods and services.
Urban CPI has already touched 4.31 per cent. Core CPI stays elevated at 5.82 per cent,” said Rupa Rege Nitsure, Group Chief Economist, L&T Finance Holdings.
“While a cut in taxes has partly covered up the negative impact of oil price spike, it may not sustain for very long. Given the massive depreciation of the rupee and elevated Crude prices, RBI will have to resort to policy rate signals sooner than later," said Rupa Rege Nitsure