The consumer price index (CPI) inflation rate for September 2018 stood at 3.77 percent against August’s 3.69 percent, on higher food and fuel costs, and pushed up by a battered rupee.

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A poll by CNBC-TV18 had expected inflation to be in the range of 3.9 to 4.5 percent.

Also Read: Factory output for August 2018 falls to 4.3%

According to data showed by the ministry of statistics and programme implementation, the food inflation for September stood at 1.08 percent compared to 0.29 percent in August, while the fuel and light inflation is unchanged at 8.47 percent.

CPI in the first half of 2018-19 averaged around 4.4 percent.

source: tradingeconomics.com

Analysts on an average expected the inflation figure to inch up month on month in September 2018 on higher fuel prices.

Experts added that the core CPI will likely be in the range of 5.8 percent to 5.9 percent, on the back of easing housing inflation.

Higher petrol and diesel prices will have an impact on the core and overall inflation. Liquefied Petroleum Gas (LPG) prices have also climbed over the month.

The Reserve Bank of India (RBI) kept the repo rate unchanged at 6.50 percent- the rate at which it lends money to commercial banks. The reverse repo rate was also retained at 6.25 percent.

"The decision was consistent with the stance of calibrated tightening of monetary policy in consonance with the objective of achieving the medium-term target for CPI inflation of 4 percent," RBI said in its policy statement on Thursday.

The rupee was trading at 73.78 a dollar, up 34 paise, from its Thursday’s close of 74.12. The domestic currency is the worst performing emerging market currency having lost almost 15 percent since January this year. Between April and September the rupee has plummeted more than 7 to the dollar.

Fuel prices edged higher across all the major cities on Friday for the fifth consecutive day with Mumbai recording petrol price at Rs 87.94 per litre and diesel at Rs 78.51 per litre.

CPI inflation for the second half of 2018-19 was revised between 3.9 and 4.5 percent against 4.8 percent projected earlier, the RBI said in its Monetary Policy Statement.

First Published:Oct 12, 2018 5:32 PM IST