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Rise in inflation seasonal; will remain below 4%: Garg

Press Trust of India  |  New Delhi 

Economic Affairs Secretary S C Garg today attributed the rise in both wholesale and retail 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 at 3.58 per cent. Wholesale price 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.)

First Published: Tue, November 14 2017. 19:28 IST