A sharp jump in India's retail inflation for September has prompted several economists to push back domestic rate cut bets to the first-half of 2025 from early December, with some citing growth as a bigger factor that could determine the timing of an interest rate reduction.

While prices of cereals, meat and fish, eggs, and pulses fell in September, prices of milk and milk products, fruits, and vegetables rose during the month.

India's retail inflation rose to 5.49% in September, driven by higher vegetable prices and a lower year-ago base, surpassing the Reserve Bank of India's (RBI) 4% medium-term target for the first time since July.

India's retail inflation in September accelerated at its fastest pace in nine months due to higher food prices, government data released on Monday showed. The annual retail inflation quickened to 5.49% in September from 3.

MoSPI says the increase in inflation rate for September 2024 is due to high base effect and weather conditions

In September, India's retail inflation rose to 5.49 percent on an annual basis, owing to continued increases in vegetable prices and a lower year-ago base. This is higher than the previous month's 5-year low of 3.