Wholesale inflation rose to six month high of 3.59 percent in October as prices of food articles, led by onion and vegetables, witnessed a sharp rise.
India's annual consumer inflation INCPIY=ECI in October increased to 3.58 percent from a year earlier, government data showed on Monday. That was its first increase in a decade and was due to the fact that inflation has spiked sharply higher since Britain voted in June a year ago to leave the European Union, a decision that prompted a sharp fall in the value of the pound.
He added that continuous increase in petrol prices and that of high speed diesel due to rise in global crude oil prices must be taken care of by the policymakers since it may have an impact on the import bills and subsequent impact on exchange rates.
The YoY CPI in urban areas ruled higher at 3.81 per cent, while in rural India it rose by 3.36 per cent.
Separately on Tuesday, data from research group Kantar showed that United Kingdom grocery price inflation for the quarter ending November 5 stood at 3.4 percent, the highest level in four years.
Analysts polled by Reuters had expected October's CPI inflation rate would edge up to 3.46 percent from September's 3.28 percent.
Sub-category of food and beverages during the month under consideration recorded a rise of 2.26 per cent over the same period previous year. After all, the central bank's quarterly economic forecasts, upon which the rate hike was based upon, pointed to a further increase in inflation to 3.2 percent in October. Pulses continued to show a fall in prices at a higher pace, of 23.1 per cent compared to 22.5 per cent in September.
Decision to lower GST (goods and services tax) rates on over 200 items could help pull down retail inflation by 20 basis points from the current levels driven by lower food and beverage prices, says a report. Secondly, the GST Council has drastically cut the GST rates... that is likely to have a subduing effect on retail inflation in the coming months.
People bore the brunt of higher vegetable prices.