New Delhi: Retail inflation rose to 4.62% in October. This is the highest since June 2018 (4.92%) and for the first time in the last 15 months, exceeding the RBI's medium term target (4%). It was 3.99% in September. The government released inflation data on Wednesday.
Food inflation reaches 7.89%
Retail inflation rose in October as food items became more expensive. Food inflation rose to 7.89%. It was 5.11% in September. It contributes more than 50% in the inflation basket. Food inflation has been steadily increasing for the past few months. It was 1.83% in May.
The RBI takes into account the retail inflation rate while deciding interest rates in the monetary policy review. In the last review meeting, the retail inflation rate for the second half (October-March) was estimated to be 3.5% to 3.7%, but in the coming years, the risk of inflation rising due to international and domestic factors.