INSUBCONTINENT EXCLUSIVE:
high in September, but still leaving room for further interest rate cuts because it's expected to remain below the Reserve Bank of India's
target, according to a Reuters poll.An extended monsoon has delayed harvests and interrupted the supplies of vegetables like onions, a key
ingredient in Indian kitchens
That probably pushed retail inflation higher last month; food prices account for over half the inflation basket.Any previous sharp rise in
onion prices has been painful for Indian policymakers
To keep that price surge from spiraling out of control, as it did a few years ago, the government has banned onion exports.The October 4-9
Only two economists expected inflation to be lower than August's 3.21 per cent.If the consensus is right, inflation will come in below the
RBI's medium-term target for 14 months in a row
The inflation data are due on October 14."Headline consumer price inflation likely jumped in September on the back of a surge in onion
senior India economist at Capital Economics."Another rate cut in December seems likely."Subdued inflation and an economic slowdown have
allowed the RBI to cut interest rates by a total of 135 basis points this year, including a 25-basis-point cut last week, making it the most
aggressive central bank in Asia.Economists in a separate Reuters poll said the central bank was not yet done with rate cuts."The RBI has
been quite vocal about the fact that they would continue to support growth and they have left the door open for more policy cuts," Sakshi
Gupta, senior India economist at HDFC Bank.Get Breaking news, live coverage, and Latest News from India and around the world on
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