Rise in inflation seasonal, will remain below 4%: Economic affairs secretary Garg

Retail inflation rose to a 7-month high to 3.58% in October on costlier food items while Inflation, based on wholesale rates, shot up to a six-month high of 3.59% as prices of food items and fuel rose sharply.

Economic affairs secretary SC Garg on Tuesday attributed the rise in both wholesale and retail inflation numbers to seasonal factors and expressed hope that the rate of price rise would remain below the 4 per cent limit for the fiscal.

Retail inflation, a key input for RBI in setting the key interest rate, has been rising consistently since June amid a slowdown in factory output measured on Index of Industrial Production (IIP). (HT File Photo)

“Retail inflation at 3.58%. Wholesale price inflation at 3.59%. Inflation riding from last month’s levels largely on account of food especially vegetables and protein products,” Garg tweeted.

As per the Consumer Price Index (CPI) data released on Monday, retail inflation rose to a 7-month high to 3.58% in October on costlier food items while Inflation, based on wholesale rates, shot up to a six-month high of 3.59% as prices of food items and fuel rose sharply.

“Hopefully, increasing trend prove to be seasonal and we will continue to have sub 4% inflation,” he said.

Retail inflation, a key input for RBI in setting the key interest rate, has been rising consistently since June amid a slowdown in factory output measured on Index of Industrial Production (IIP).

The Monetary Policy Committee headed by RBI Governor is entrusted with the objective of achieving the medium-term target for retail inflation of 4% within a band of +/- 2%, while supporting the growth.