India's CPI inflation at 5-mth high of 7.4% in Sep; Aug IIP contracts 0.8%

For the ninth month in a row, retail inflation has remained above the Reserve Bank of India's tolerance level of 6%

In twin blows to Indian economic revival, higher food prices drove retail inflation to a five-month high of 7.4 per cent while factory output fell for the first time in 18 months.

The second consecutive month of rise in consumer price index (CPI)-based inflation will add to the pressure on the Reserve Bank of India (RBI) to again raise interest rates to tame high prices.

Inflation has been above the targeted zone for the ninth month in a row and as per statute, the RBI will now have to explain to the government in writing why it failed to keep prices below