Financial Chronicle - - FRONT PAGE -

In­dia’s re­tail in­fla­tion picked up in Oc­to­ber to a 7-month high, driven by faster rises in prices of food and fuel prod­ucts, damp­en­ing chances of an in­ter­est rate cut by the cen­tral bank next month. An­nual con­sumer in­fla­tion in Oc­to­ber in­creased to 3.58 per cent from a year ear­lier, gov­ern­ment data showed on Mon­day. An­a­lysts polled by Reuters had ex­pected Oc­to­ber’s CPI in­fla­tion rate would edge up to 3.46 per cent from Septem­ber’s 3.28 per cent. Some an­a­lysts ex­pect In­dia’s de­ci­sion on Fri­day to slash tax rates on 178 items such as choco­lates and de­ter­gent pow­ders to 18 per cent from 28 per cent could marginally lower re­tail in­fla­tion in com­ing months. “There is, how­ever, a low like­li­hood of a rate cut by the RBI in the im­me­di­ate term,” said Aditi Na­yar, an econ­o­mist at Icra. —

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