Business News
Retail inflation rises to 7-month high of 3.58% in October on rising food, fuel prices
New Delhi: Costlier food items, particularly vegetables, pushed up retail inflation in October to 7-month high of 3.58 percent.
The Consumer Price Index (CPI) based inflation was 3.28 percent in September.
It was 4.2 percent in October last year. The previous high was 3.89 percent in March this year.
As per the data released by Central Statistics Office (CSO), the October inflation for the food basket increased to 1.9 percent. It was 1.25 percent in September.
The rate of price rise in the vegetable segment almost doubled to 7.47 percent as against 3.92 percent in September.
Higher inflation was also noted in protein rich items like eggs and milk (and its products). However, fruits were comparably cheaper in October on sequential basis.
Inflation in pulses continued to decline and settled at (-)23.13 percent. It was (-)22.51 percent in September.
Fuel and light were costlier on sequential basis. Higher inflation was also noted in housing segment.
All eyes will be on the current fiscal’s sixth bi-monthly meeting of the Monetary Policy Committee, headed by RBI Governor Urjit Patel, on 5-6 December.
Retail inflation, a key input for RBI in setting the key interest rate, has been rising consistently since June amid a slowdown in factory output measured on Index of Industrial Production (IIP).
