The consumer price-based retail inflation in September has been higher than expected at 9.84 %. This is higher than the consumer-price-index (CPI) based inflation of 9.52 % in August. Retail inflation for rural and urban areas stood at 9.71 % and 9.93 % respectively in September. For the previous month, rural and urban area inflation stood at 8.93 % and 10.32 % respectively.
A higher-than-expected retail inflation has dimmed the prospects for a repo rate cut in the RBI policy review meeting in October-end. Besides, it does not bode well for the interert rate scenario, thereby keeping your EMIs at the same level as before.