The Reserve Bank of India (RBI) is expressing increased concern over the escalating core inflation rates, which specifically exclude more volatile items such as food and energy. Core inflation has seen a noticeable uptick, reaching 3.8 percent in October. This persistent rise in costs is starting to have a tangible impact on both consumers and businesses, potentially straining economic conditions.

The RBI’s observation of these inflationary pressures is crucial as it directly influences their monetary policy decisions. The central bank’s Monetary Policy Committee (MPC) is set to convene in December to deliberate on these developments. During this meeting, the committee will likely consider the implications of the current inflation trends and evaluate necessary adjustments to the monetary policy to ensure economic stability and control inflationary pressures. This ongoing trend of rising core inflation is a significant factor that could influence their decision-making process, possibly leading towards tighter monetary policies to curb the inflation rise.