India's retail inflation reached a five-month low of 4.87% in October due to a favorable base effect and falling prices in some categories, revealed government data. Although onion prices offset the decline, the Consumer Price Index (CPI) was largely in line with predictions.
Food inflation remained steady, with rising vegetable prices countered by decreases in potatoes and tomatoes. Core inflation, excluding food and fuel, decreased to 4.2%.
While headline inflation is within the Reserve Bank of India's target range, experts expect a temporary rise in November-December. The Monetary Policy Committee is likely to maintain a hawkish stance.