High food price-led inflation worrisome for markets, policymakers: Analysts

High inflation will keep the markets on edge as they were hoping that the global central banks, especially the US Fed and the RBI will go soft on rate hikes over the next few months

Elevated food price-led inflation triggered by unseasonal rains will become a sore point for markets and the policymakers going ahead, said analysts. 

India’s retail inflation rate / consumer price inflation (CPI) surged to 7.41 per cent in September, mostly led by a higher food inflation rate that came in at a 22-month high of 8.6 per cent in the month gone by. With this, the Reserve Bank of India (RBI) has missed its inflation target for the third consecutive quarter.

“The