India’s retail inflation slowed more than economists had estimated after central bank Governor Raghuram Rajan held one of Asia’s highest interest rates for a fourth straight meeting.
Consumer prices rose 6.46 percent in September from a year earlier, the slowest pace since the index was created in January 2012 and compared with 7.73 percent in August, the Statistics Ministry said in New Delhi yesterday. The median of 42 estimates in a Bloomberg survey had been for a 7.11 percent gain.
While the Reserve Bank of India seems set to achieve its 8 percent CPI target for January, its goal of 6 percent a year later is in doubt, Rajan said Sept. 30. Lower inflation or a narrower budget deficit may lead to sustainable growth and boost India’s credit rating after Standard & Poor’s last month raised its outlook to stable from negative.