GDP growth plummeted to a six-year low of 5 per cent for the June quarter and is expected to come lower for the September quarter.
In October, inflation based on the Consumer Price Index (CPI) spiked to a 16-month high of 4.62 per cent on costlier food items.
Retail inflation as measured by the consumer price index (CPI) touched a 16-month high as it rose to 4.62 per cent in October.
The price rise in the food basket was recorded at 5.11 per cent in September, as against 2.99 per cent in the preceding month.
The annual rate of inflation, based on monthly wholesale price index was at 5.22 per cent in September 2018.
If the consensus is right, inflation will come in below the RBI’s medium-term target for 14 months in a row.
The six-member MPC is scheduled to announce the fourth bi-monthly monetary policy for 2019-20 on Friday, October 4.
RBI has already slashed the repo rate (short-term borrowing rate) four times aggregating to 1.10 percentage points since January.
However, fuel and power basket continued to witness deflation at 4 per cent in August as against 3.64 per cent in July.
The wholesale price index (WPI)-based inflation was at 1.08 per cent in July this year and 4.62 per cent in August 2018.