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🌏 India's inflation just hit a series high, and the RBI is betting its reserves can absorb the oil shock

🌏 India's inflation just hit a series high, and the RBI is betting its reserves can absorb the oil shock

India's consumer prices rose 4.82% year-on-year in August, a series high, and the RBI is leaning on a record foreign-reserve build rather than a rate hike to absorb the fallout from a drone strike that knocked out a major Saudi pipeline.

Table of India CPI and CFPI inflation and index values for rural, urban and combined, July 2026 final and August 2026 provisional.
PIB's August CPI release, on the new 2024=100 series, puts food inflation at 5.95% as the RBI's 5–7 October MPC nears with the repo still at 5.25%. Source

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