Onion prices are fueling inflation in India but RBI may still ignore it

India’s headline inflation probably breached the central bank’s 4% medium-term threshold last month, but that surge -- driven by high onion prices -- is unlikely to distract monetary policy makers from their focus on growth.

Economists pegged the gains in consumer prices at 4.35% in October, according to the median of 33 economists surveyed by Bloomberg. That would be the first above-4% print since July 2018 and the highest since June last year.

While policy makers will assess the accompanying food-price data, it may not be compelling enough to hold their attention: underlying inflation -- a measure of demand in the economy