A multi-pronged challenge

India is grappling with a surge in inflation that is taking a heavy toll on people's purchasing power.

It is also affecting consumer sentiment, and will likely thwart the hopes for an interest rate cut in the immediate future. Retail inflation, according to the National Statistical Office (NSO), hit a 14-month high of 6.21 per cent in October, while food inflation breached double digits for the first time since July 2023, soaring to a staggering 10.87 per cent. The spike is primarily driven by the escalating prices of essential food items including vegetables, oils, fruits, and proteins—all of which saw significant increases due to both domestic factors and global market dynamics.