MUMBAI, Oct 15 Reuters A sharp jump in India39;s retail inflation for September has prompted several economists to push back domestic rate cut bets to the firsthalf of 2025 from early December, with some citing growth as a bigger factor that could determine the timing of an interest rate reduction.

Annual retail inflation clocked in at 5.49 in September, its highest level in nine months, due to rising food prices. It rose sharply from 3.65 in August and was above economists39; forecast of 5.04.

September CPI print has reaffirmed our view that despite a stance change, nearterm inflation risks do not favour a December rate cut, economists at CitiBank said in a note.

While our base case remains Feb2025 rate cuts, we continue to see risk of further delay to Apr2025 as inflation could still be averaging 4.5 by the time of Feb2025 MPC Monetary Policy Committee meet, they added.

The Reserve Bank of India RBI held rates steady at 6.5 for a tenth straight meeting last week but eased its stance to 39;neutral39; from 39;withdrawal of accommodation39;, raising expectations of a rate cut as early as December.

Food inflation, which accounts for nearly half of the consumption basket, rose to 9.24 in September, compared to 5.66 a month prior. Economists expect food inflation to peak in October and see high chances of the overall inflation print climbing further.

The Committee is unlikely to ease until it has some confirmation of the winter disinflation and CPI heading back…