Oil, battered rupee: Mounting risks that are difficult for RBI to ignore

Inflation within target and signs that demand may be cooling in the world's fastest-growing major economy prompted the central bank to keep interest rates on hold last week

India’s headline inflation data may be subdued for now, but there are mounting risks that are difficult to ignore: a record-low currency, high oil prices, and a looming election that’s prompting the government to raise food prices to placate farmers.

Data due Friday evening will probably show consumer prices rose 4 per cent in September, according to the median of 35 estimates in a Bloomberg survey of economists. That pace is faster than the previous month’s, but bang on the target set by the Reserve Bank of India.

Inflation within target and signs that demand may be cooling in the world’s fastest-growing