Retail inflation jumps to 7-month high of 3.6% in October

Retail inflation jumps to 7-month high of 3.6% in October

Retail inflation jumps to 7-month high of 3.6% in October

INFLATION remained at a five-year high of three per cent last month, putting continued strain on the budgets of United Kingdom households.

According to the data furnished by the Ministry of Statistics and Programme Implementation, October's consumer price index (CPI) inflation rose to 3.58 per cent from 3.28 per cent in September.

Retail inflation has been steadily rising since June, when it eased to 1.46 percent - its slowest pace since India started releasing such figures in January 2012, based on combined data for rural and urban consumers. However, fruits were comparably cheaper in October on sequential basis. The previous high was 3.89 per cent in March this year.

Both wholesale and retail prices edged up in the month of October led by firming up of food prices, especially in the vegetables segment, said FICCI President Pankaj Patel.

"This would be driven by lower food and beverage (chocolate, condensed milk and fish), household goods (detergent, sanitary ware and glassware) and personal care (shaving products, shampoos and cosmetics) prices", it added.

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The BoE tightened borrowing costs to 0.50 percent from a record-low of 0.25 percent, with Britain's inflation far above the central bank's 2.0-percent target rate.

India Inc. on Tuesday said the rise in inflation numbers for October is in line with the industrys expectations owing to factors like marginal rise in demand together with increase in prices of crude oil and other commodities globally.

But the increases were offset by the falling motor fuel and furniture prices and the costs of owner occupied housing.

Commenting on the Reserve Bank of India's (RBI) expected reaction to the inflation numbers released before its monetary policy review meet on December 6, Jaikishan J. Parmar, Research Analyst at Angel Broking, said: "Firstly, the CPI inflation is still well within the RBI comfort zone of 4 per cent. However, the RBI rate decision may still predicate on the Fed trajectory".

People bore the brunt of higher vegetable prices.

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