The factors that are likely to impact inflation number going forward include volatility in the global financial markets, oil prices, MSP pass-through and staggered impact of HRA increases by states.
On MSP hike, RBI said there is a considerable uncertainty and the exact impact would depend on the nature and scale of the government's procurement operations.
The increase in inflation has reduced possibilities of an interest rate cut by the Reserve Bank in its upcoming monetary policy review.
The drop in retail or consumer inflation was mostly driven by lower food prices, the government said.
The ease in the inflation number was mostly driven by lower food prices. However, the figure remains higher than the 4 per cent target of the Reserve Bank of India.
According to data released by Central Statistics Office (CSO), the inflation rate for the last month was mainly driven by steep hike in food and fuel prices.
The inflation rate stood at 3.63 per cent during the corresponding period last year. In October, the inflation rate was registered at 3.58 per cent.
Costlier food items, particularly vegetables, pushed up retail inflation in October to seven-month high of 3.58%. The Consumer Price Index-based inflation was 3.28% in September.
On a sequential basis, the country's Consumer Food Price Index (CFPI) dropped to 1.25 per cent during the month under review when compared to 1.52 per cent in August 2017.
The current rate of inflation is the highest in five months.
Retail inflation in June fell to 1.54 per cent, as compared to 5.77 per cent in the same month last year.
The CPI based retail inflation stood was at 2.99 per cent in April 2017. In May 2016, it was at 5.76 per cent. The overall food inflation was in negative territory at (-) 1.05 per cent during the month.
Shrugging off the depressive effect of demonetisation, India's Consumer Price Index (CPI), or retail inflation, during March rose month-on-month at 3.81 per cent, even as factory output in the country contracted by (-)1.2 per cent in February.
Official data released by the government showed that the higher fuel costs drove up inflation to its highest level in five months.
The retail inflation rose to 4-month high of 3.65 per cent in February from 3.17 per cent during the previous month.
India's annual retail inflation eased by 100 basis points to 5.05 per cent in August, but industrial production contracted by 2.4 per cent in July registering its worst performance in eight months mainly on account
India's annual retail inflation shot up beyond the official tolerance level of 6 per cent for July mainly on higher food prices like pulses and vegetables, while on the brighter side the factory output rose
New Delhi: India's retail inflation rose for the second straight month in May to 5.76 per cent from 5.47 per cent in the month before due to a sharp spike in food prices, according to
India’s factory output remained flat after rising during the month before, the annual retail inflation for April rose to 5.39 percent from 4.83 percent in March
New Delhi: India's retail inflation, based on the consumer price index (CPI), for September increased to 4.41 percent, from 3.74 percent recorded for the previous month, on the back of higher food prices, official data
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