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.

The sharp rise in September’s retail inflation has led some economists to delay expectations for interest rate cuts to the first half of 2025.

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.

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.

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