In October, inflation based on the Consumer Price Index (CPI) spiked to a 16-month high of 4.62 per cent on costlier food items.
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 price rise in the food basket was recorded at 5.11 per cent in September, as against 2.99 per cent in the preceding month.
If the consensus is right, inflation will come in below the RBI’s medium-term target for 14 months in a row.
However, retail inflation is still within the Reserve Bank's target range, thus keeping hopes of another rate cut alive.
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.
Retail inflation was 3.18 per cent in June 2019, while it stood at 4.17 per cent in year-ago period (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.