India: Inflation ticks up in October
November 12, 2021
Consumer prices increased 1.41% from the previous month in October, accelerating from September's 0.18% increase. Looking at the details of the release, food and beverages prices jumped in October compared to the previous month and price pressures for fuel and light intensified.
Inflation rose from 4.3% in September to 4.5% in October. That being said, the trend pointed down mildly, with annual average inflation coming in at 5.2% in October (September: 5.5%).
Commenting on the outlook for inflation next year, analysts at the EIU noted:
“Inflationary pressures from a strong anticipated recovery in domestic demand will be offset by tighter monetary policy settings and a slower rise in commodity prices.”