RBI policy projections: Sept inflation to hit five-month high of 7.6%

Central bank will have to write to government explaining the reasons of its failure to contain inflation up to 6%

Retail price inflation would hit a five-month high of 7.59 per cent in September, if projections given by the Reserve Bank of India's monetary policy committee (MPC) come out true.

The projections may also mean that the central bank will have to write to the government to explain the reasons for its failure to contain the inflation rate up to six per cent for three consecutive quarters.

The consumer price index (CPI)-based inflation rate stood at 6.71 per cent in July and 7 per cent in August. The MPC retained the projection for inflation at 7.1 per cent for the