Retail inflation as measured by the consumer price index (CPI) touched a 16-month high as it rose to 4.62 per cent in October.

The annual rate of inflation, based on monthly wholesale price index was at 5.22 per cent in September 2018.

The wholesale price index (WPI)-based inflation was at 1.08 per cent in July this year and 4.62 per cent in August 2018.

The expected rise in inflation comes despite the price of oil, India’s biggest import, falling by more than 7 per cent.

Inflation based on Wholesale Price Index (WPI) was at 2.02 per cent in June this year and 5.27 per cent in July 2018.

CPI (Consumer Price Index) retail inflation is projected at 3.1 per cent for the second quarter this fiscal.

Food prices have risen due to lower-than-expected monsoon rains over the past two months.

WPI inflation in June is the lowest in 23 months, since July 2017, when it was at 1.88 per cent.

The fiscal deficit target for this financial year was reduced to 3.3 per cent from 3.4 per cent.

Inflation in food articles hardened with steep rise in prices of vegetables during April.