India's inflation rises to 5.54% in September

Inflation rose from 4.83% in August, remaining above the Reserve Bank of India's 4% medium-term target for a fourth consecutive month. Food inflation increased from 5.97% to 7.74%, while transport inflation climbed from 4.60% to 5.01%. The figures were released on October 12. 

Higher-than-expected inflation could strengthen the case for further monetary tightening after the central bank raised its policy rate by 25 basis points to 5.50% last week. Elevated oil prices and the impact of weak monsoon rainfall on food supplies are adding to price pressures. A worsening inflation outlook could sustain pressure on Indian bonds and the rupee.