Retail inflation in Sept to rise to five-month high at 7.4%: Deutsche Bank

India's headline retail inflation is expected to rise to a five-month high of 7.4% in September, with the risk of going higher if the momentum of food and vegetable prices picks up further in the rest of the month, Deutsche Bank said.

"Our nowcasting exercise reveals that CPI inflation is tracking around 7.4% yoy in September vs. 7.0% yoy in August," chief India economist Kaushik Das said in a note dated Sept. 20.

India's retail inflation has stayed above the Reserve Bank of India's upper tolerance range of 6% for eight straight months through August.

The foreign bank