Indian consumer price inflation slowed in October to 6.73% on weaker food price rises and a strong base one year ago but remained stubbornly well above the 6% upper limit of the Reserve Bank of India's tolerance band, a Reuters poll predicted.
That inflation rate, measured by the annual change in the consumer price index , is forecast to slip sharply from 7.41% in September, according to the median view from a Nov. 2-9 Reuters poll of 47 economists.
Economists warned, however, this was not a sign of a sudden improvement in what is a gradual drift downward in price pressures. That leaves the prospect of higher interest rates from the RBI on the table. That overall outlook was in line with a separate recent Reuters poll of economists which forecast inflation would not reach the mid-point of the RBI's target range until at least 2025.
A weaker rupee , down around 9% for the year, is also adding to upward price pressures, prompting the RBI to defend the currency by selling dollars from its reserves.
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