India inflation likely rose to RBI's four percent target in September: Poll

Forecasts ranged from 3.60 percent to 4.70 percent, with over 40 percent of economists expecting inflation to rise above the RBI's target, almost one third forecast it to fall below target and the remaining 11 said it would be bang on 4.00 percent.

"Consumer price inflation is likely to have risen in September, in large part because the recent sharp fall in food inflation appears to have reversed," said Shilan Shah, a senior India economist at Capital Economics.

"Core inflation is likely to have remained elevated. Despite the RBI keeping rates on hold last week, the tightening cycle still has a little bit further to run."

Although food inflation has quickened it was subdued enough to offset some of the pain coming from the double whammy of a weak currency and rising oil prices.

The rupee tumbled to a new low of 74.395 against the US dollar on Tuesday and Brent crude, India's costliest import item, hit a four-year high this month.

According to a separate Reuters poll, the struggling rupee, which has lost over 16 percent against the greenback this year so far, was not expected to reverse its losses anytime soon.

"India's macro concern at the moment is not the rupee, but liquidity. If the RBI takes care of liquidity, then other concerns should gradually subside," said Shashank Mendiratta, economist at ANZ Bank.

"The RBI to that extent has taken steps to infuse liquidity by announcing OMOs (open market operations) and similar measure will be taken up through this fiscal year."

Wholesale price inflation probably rose to 4.90 percent in September from 4.53 percent in August.

The poll forecast industrial output expanded 4.0 percent in August from a year ago compared with 6.6 percent in July.

That prediction was probably based on slower output growth from eight core industries - accounting for nearly 40 percent of total industrial production - with annual production cooling to 4.2 percent in August, from 7.3 percent a month earlier.