India’s Oct inflation likely hovered six month low

India’s retail inflation likely hovered near a six-month low in October as higher food and fuel prices were offset by an overall favourable comparison with prices one year ago, leaving the central bank room for now to leave interest rates steady.

The median forecast from Reuters poll of 43 economists taken Nov 8-9 predicted inflation as measured.

If realised, it would mark the fourth consecutive month inflation has been within the Reserve Bank of India’s (RBI) tolerance band of 2 per cent-6 per cent. The report will be released at 1200 GMT on Nov. 12. There were a few estimates in the poll below the RBI’s medium-term target of 4.00 per cent, with a range of 3.42 per cent-5.00per cent.

“Favourable base effects likely kept headline CPI inflationsubdued in October in annual terms, although this masks asequential rise in consumer prices,” noted Sanjay Mathur, chief economist