Wholesale inflation returned to above 2 percent in October, reaching a four-month high, and rising from 1.84 percent recorded a month back, according to data released on November 14.
The wholesale price index (WPI) increased to 2.4 percent on the back of a rise in food inflation to 13.5 percent as vegetables prices surged over 60 percent in October.
Earlier this week, the consumer inflation reading came at a 14-month high of 6.2 percent, breaching the RBI’s tolerance band of 2-6 percent and dashing hopes of a rate cut in the December meeting of the Monetary Policy Committee (MPC).
Food inflation simmered in double digits to its highest level in 15 months, as vegetable prices galloped. Tomato inflation was 161 percent, while potato, onions and garlic recorded over 50 percent inflation.
There was a slight uptick in core inflation as well.
The Reserve Bank of India held the policy rate at 6.5 percent for the tenth consecutive time at its meeting in October. Experts indicate that the central bank may ease the rates in the February meeting.
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