Retail inflation inched up to a seven-month high in October on the back of higher food, fuel and housing prices, dashing hopes of any cut in interest rates by RBI for now.
Inflation, as measured by the consumer price index, rose an annual 3.6% in October, higher than previous month’s 3.3%. The rate was 4.2% in October 2016. Inflation in rural areas was 3.4%, while in urban centres it stood at 3.8%.
Food inflation rose 1.9% in October, higher than September’s 1.3%, while housing inflation touched a 40-month high of 6.7% due to revision of rent allowance for employees of the central government.
Economists said they expect the RBI to hold rates.