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.

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.

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

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.

Food inflation, which accounts for nearly half of the consumption basket, rose to 9.24 per cent in September, compared to 5.66% a month prior

Economists are adjusting their forecasts as India's inflation surged due to higher food prices, with rates now likely to remain unchanged in December. The RBI's neutral stance and concerns over achieving a 4% target inflation level are influencing the expected timeline for potential rate cuts.

India's retail inflation in September accelerated to its highest in nine months, due to higher food prices, according to government data released on Monday.