ALSO READInflation pain easing; 25 bps rate cut likely on Aug 2: BofAML July sees spike in CPI, WPI inflation; trade deficit a worry Retail inflation rises to 7-month high of 3.58% in Oct Asian shares bounce after losses, dollar sags on weak U.S. CPI Market keeps a low profile on spectre of inflation
Economic Affairs Secretary S C Garg today attributed the rise in both wholesale and retail inflation numbers to seasonal factors and expressed hope that the rate of price rise would remain below the 4 per cent limit for the fiscal. "Retail inflation at 3.58 per cent.
Wholesale price inflation at 3.59 per cent. Inflation riding from last months levels largely on account of food especially vegetables and protein products," Garg tweeted. As per the Consumer Price Index (CPI) data released yesterday, retail inflation rose to a 7-month high to 3.58 per cent in October on costlier food items while Inflation, based on wholesale rates, shot up to a six-month high of 3.59 per cent as prices of food items and fuel rose sharply. "Hopefully, increasing trend prove to be seasonal and we will continue to have sub 4 per cent inflation," he said. Retail inflation, a key input for RBI in setting the key interest rate, has been rising consistently since June amid a slowdown in factory output measured on Index of Industrial Production (IIP). The Monetary Policy Committee headed by RBI Governor is entrusted with the objective of achieving the medium-term target for retail inflation of 4 per cent within a band of +/- 2 per cent, while supporting the growth.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)