Economy

Higher food prices accelerate India's retail inflation in October

Higher food prices accelerate India's retail inflation in October

According to government data released on Monday, the annual consumer inflation in October increased to 3.58 per cent from a year ago.

India's annual wholesale price inflation picked up in October to a six-month high, driven by faster rises in prices of food and fuel products, government data showed on Tuesday.

Pan, tobacco and intoxicants saw high inflation and settled at 6.91 per cent. Clothing and footwear (4.76), housing (6.68), and fuel and light (6.36) were costlier on sequential basis.

He added that continuous increase in petrol prices and that of high speed diesel due to rise in global crude oil prices must be taken care of by the policymakers since it may have an impact on the import bills and subsequent impact on exchange rates.

Other notable categories such as cereals became dearer by 3.68 per cent and meat and fish recorded a rise of 3.12 per cent.

INFLATION remained at a five-year high of three per cent last month, putting continued strain on the budgets of United Kingdom households. Within food inflation, the price of vegetables, milk and milk products contributed to the increase.

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Food inflation moved up to 1.9 per cent in October from 1.25 per cent in September. However, fruits were comparably cheaper in October on sequential basis. It was (-) 22.51 per cent in September.

The BoE tightened borrowing costs to 0.50 percent from a record-low of 0.25 percent, with Britain's inflation far above the central bank's 2.0-percent target rate.

The Retail Price Index (RPI), a separate measure of inflation, was 4% last month, up from 3.9% in September.

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 December 5-6.

"We're already seeing slower rises in the costs of raw materials and prices at the factory gate, which could be a sign the inflationary spike is close to an end", said Ben Brettell, senior economist at stockbrokers Hargreaves Lansdown.