By Ed Frankl
Inflation in India rose for a third straight month in October, as food prices remained high amid concerns that global geopolitical tensions could lead to increased commodity prices.
Consumer prices increased by 6.2% on year, accelerating from 5.5% in September, government data showed Tuesday.
That marked the highest level of inflation since August 2023, and also the first time since then that the rate has risen above the Reserve Bank of India's 2%-6% inflation target.
Food inflation once again drove the high rate, with prices up 9.7% on year, mainly due to an increase in inflation of vegetables, fruits and oils and fats, the statistics ministry said.
The RBI has kept its key interest rate at 6.5% since February 2023. At its most recent meeting in October, Gov. Shaktikanta Das said that despite core inflation appearing to bottom out, the bank remained watchful of significant upside risks to inflation.
Write to Ed Frankl at edward.frankl@wsj.com
(END) Dow Jones Newswires
11-12-24 0711ET
