In sync with retail inflation, India’s wholesale inflation accelerated to a six-month high of 3.59% in October, from 2.6% a month ago, on the back of rising vegetable prices. Vegetable prices increased 36.6% in October, leading to food inflation more than doubling to 4.3% in the same month. Fuel inflation also rose by 10.5% in October from 9% in September as international crude oil prices hardened. However, inflation for manufacturing items eased to 2.6% in October from 2.7% a month ago.
Government data released on Monday showed India’s retail inflation quickened to 3.58% in October, the fastest pace in seven months, spurred by rising food and fuel prices, virtually ruling out the possibility of an interest rate cut by the Reserve Bank of India (RBI) in its 6 December monetary policy review.
“Inflation rising from last month’s levels largely on account of food especially vegetables and protein products. Hopefully, increasing trend proves to be seasonal, and we will continue to have sub-4% inflation,” economic affairs secretary Subhash Chandra Garg tweeted on Tuesday.