India's inflation rate likely to hit 8-year low: Report
India's retail inflation might drop to just 1.5% in September 2024—its lowest since 2017—according to a Mint survey.
This sharp dip is mostly thanks to a decline in prices of some food items such as vegetables and pulses, plus a favorable comparison to last year.
Food inflation expected to slip back into negative territory
After spiking in August, food inflation is expected to slip back into negative territory.
Recent GST cuts may also help ease costs, though it'll take some time before we feel the full effect.
Core inflation may creep up a bit
With food prices settling down, overall inflation could stay below the RBI's 2% lower limit for a while.
Still, there are some wildcards: core inflation (excluding food and fuel) might creep up a bit, and rising gold prices could make things tricky.
We'll get the official numbers on October 13, 2024.