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India inflation likely rose in August, snapping 3-month downtrend: Poll

Food inflation, which accounts for nearly half the consumer price index (CPI) basket, is expected to have soared as prices of essential crops like wheat, rice and pulses were driven higher by a record heatwave, squeezing household budgets.

September 09, 2022 / 09:11 AM IST

India's retail inflation likely snapped a three-month downward trend in August as food prices surged, a Reuters poll of economists found, which may add pressure on the Reserve Bank of India to hike interest rates more aggressively in coming months.

Food inflation, which accounts for nearly half the consumer price index (CPI) basket, is expected to have soared as prices of essential crops like wheat, rice and pulses were driven higher by a record heatwave, squeezing household budgets.

While high inflation is a global phenomenon, it is felt acutely in a country like India where millions live in abject poverty.

Despite the Indian government restricting wheat flour exports towards the end of last month, inflation - as measured by the CPI - likely rose to an annual 6.90% in August, compared with 6.71% in the prior month, the Sept. 5-8 Reuters poll of about 45 economists showed.