Mumbai: Consumer inflation for the month of October surged to 3.58 per cent driven by housing, fuel, pan, tobacco and intoxicants prices.
According to data released by the government, the retail inflation rate for the month of September stood at 3.28 per cent.
Inflation for the month of October stood at 4.20 per cent in 2016. Analysts polled by Reuters had expected October’s retail inflation at 3.46 percent, up from 3.28 percent in September.
Food and beverage prices edged up slightly from 1.76 per cent in September to 2.26 per cent in October.
The prices of pan, tobacco and intoxicants saw a sharp rise of 6.91 per cent in October. Recently, the Goods and Services Tax (GST) Council, even after pruning the 28 per cent slab, decided to keep the above items in the top slab.
Fuel inflation stood at 6.36 in October as opposed to 5.56 per cent in September. Housing inflation also rose to 6.68 in October against 6.10 per cent in September.
This uptick in prices reduces further chances of a rate cut by the Reserve Bank of India in its monetary policy review meet in December. The Reserve Bank at its policy review in October kept the key interest rate unchanged at 6 per cent, citing upward trend in inflation.
