Rate Hike Odds Rise as Inflation Breaches RBI’s Target Again

  • Consumer prices rose 6.44% in February versus 6.40% estimate
  • RBI to review rates as markets weigh fallout of SVB’s collapse

A wholesale market in New Delhi.

Photographer: Anindito Mukherjee/Bloomberg
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India’s retail inflation breached the central bank’s target for a second straight month in February, raising odds of further monetary tightening even as markets weigh the fallout of Silicon Valley Bank’s collapse.

Consumer prices rose 6.44% last month from a year earlier, according to data released by the Statistics Ministry Monday. That’s lower than a 6.52% gain in January and compares with a 6.40% median estimate in a Bloomberg survey.