Explained: Why CPI inflation is rising, its impact on interest rates

Despite rising CPI inflation, analysts expect the Reserve Bank of India to cut repo rate – the rate at which it lends short-term funds to banks – as inflation remains within the RBI's target of 4 per cent even as growth of the Indian economy has been slowing down.

cpi inflation, retail inflation, rbi, crisil, repo rate, indian economy, explained news, indian express — Rising prices in the food basket, as well as jump in fuel prices, are contributing to the rising inflation.

Retail inflation rose to a six-month high of 2.92 per cent in April due to a spike in food prices, according to data the Central Statistics Office on Monday. The Consumer Price Index-based (CPI) inflation was at 2.86 per cent in the previous month and 4.58 per cent in April 2018. CPI inflation in April is the highest since October 2018 when the rate was 3.38 per cent.