RETAIL INFLATION AT 7MONTH HIGH DRIVEN BY FOOD AND FUEL PRICES

NEWDELHI: Retail inflation quickened to 3.58% in October, the fastest pace in seven months, spurred by rising food and fuel prices, virtually ruling out the possibility of an interest rate cut by the Reserve Bank of India in its 6 December monetary policy review.

Measured by the Consumer Price Index of CPI, retail inflation rose by 3.28% in September.

Combined food inflation in October was 1.9% in October, compared with 1.25% a month ago as vegetable prices increased by 7.47% from 3.92% in the previous month.

Prices of milk and egg increased modestly and fruit and fish prices came down marginally.

Data released by Central Statistics Office showed that inflation in urban India, at 3.81%, was higher than that in rural India, at 3.36%.