Inflation soars to 6.46% as onion prices continue India's tear-jerker streak, spike RBI rate cut hopes

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Inflation, based on WPI, was at 6.1 per cent in August and 5.85 per cent in the previous month. Inflation, based on WPI, was at 6.1 per cent in August and 5.85 per cent in the previous month.
SummaryIndia inflation soars as onion prices jump a whopping 323% year on year in Sept, fruits 13%.

still yet to be felt as rice and wheat prices are still increasing month-on-month."

BADRISH KULHALLI, FIXED INCOME FUND MANAGER, HDFC STANDARD LIFE INSURANCE CO

"There seems to be some amount of the currency weakness being passed on to prices, especially primary article prices. We haven't seen any improvements in prices because of the good monsoon. probably we'll have to wait until November and December in time for the harvest season to see any impact on food prices.

"This will not give much comfort for RBI to hold rates and sets up for a rate hike in the upcoming policy review at the end of the month."

RUPA REGE NITSURE, CHIEF ECONOMIST, BANK OF BARODA, MUMBAI:

"Headline inflation has risen to 6.46 percent in September on account of joint impact of food inflation and rupee depreciation.

"Rising input costs have again pushed up core inflation on a month-on-month basis. We have to wait and see how better harvest this year pushes down the food inflation despite pressures from the political economy. While CAD worries have faded, inflation continues to remain the major macro risk".

DHARMAKIRTI JOSHI, CHIEF ECONOMIST, CRISIL LTD, MUMBAI:

"The non-core inflation is pressurising and it cannot be ignored by the central bank. And we believe another 25 basis points rate hike is coming because expectation on inflation still continue to remain high.

"Monsoon impact is yet to play out, and if the monsoon rains put some downward pressure on food, but food will not be completely tamed though. Looks like at least one more rate hike after October is likely.

R K GUPTA, MANAGING DIRECTOR, TAURUS MUTUAL FUND, DELHI

"Inflation is not materially high as government had increased gas, petrol and diesel prices last month. Even vegetable prices are high especially in North India because of heavy rains.

"It is on expected terms. Only fear is with higher WPI rate, the Reserve Bank of India may consider raising rates further.

"I don't think inflation will come down because every month government is raising prices of one product or the other."

ABHEEK BARUA, CHIEF ECONOMIST, HDFC BANK, NEW DELHI:

"The bottom line is that with the new governor it's very clear he will not unnecessarily over-react to just one month's print.

"I think the RBI is forward looking and they are looking at the medium-term inflation trajectory as it's likely to pan out instead of getting excessively influenced by this one print.

"Having said that, there was a case for a repo rate hike, which

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