New Delhi: Rising for the third straight month, retail inflation climbed to 5 % in October due to costlier pulses and other food items.
The Consumer Price Index (CPI) based inflation in September stood at 4.41 %. In October 2014, the retail inflation was 4.62 %.
Overall consumer food inflation during the month rose to 5.25 % in October, government data showed today. Retail inflation in pulses and products category rose to a staggering 42.20 % in October.
While the price rise in the food and beverages category was at 5.34 % in October, inflation in cereals and products was also higher at 1.46 %.
Retail inflation in vegetables and fruits stood at 2.42 % and 1.98 % respectively in October. However, among other protein rich items such as meat and fish, the rate of price rise has slowed to 5.01 %.
Likewise, rate of retail price rise in milk and its products was 4.79 %. During the month, eggs also turned cheaper at 0.59 %.
As per the data from the Ministry of Statistics and Programme Implementation (MOSPI), inflation in sugar and confectionery category remained in negative zone at (-)10.47 %.
The price rise in spices category was higher at 9.82 % and for non-alcoholic beverages at 4.31 %.
In the rural areas, retail inflation rose to 5.54 % and for urban sector it was at 4.28 %. The RBI takes into account retail inflation while formulating monetary policy. The central bank’s retail inflation target is 5.8 % by January 2016.