With spike in food, vegetable prices, retail inflation hits seven-month high


Ministry of Statistics and Programme Implementation has revised the Base Year of the Consumer Price Index (CPI) from 2010=100 to 2012=100 with effect from the release of indices for the month of January 2015. The rate of price rise in the vegetable segment nearly doubled to 7.47 per cent as against 3.92 per cent in September. The Reserve Bank of India targets a retail inflation rate of 4%, with a tolerance band of 2%-6%.

Consumer price index rose to 3.58 percent year-on-year in October from September's 3.28 percent.

Top gainers included TCS, M&M, Sun Pharma, Kotak Mahindra, HPCL, UPL and NTPC while Adani Ports, Aurobindo Pharma, ONGC, Idea Cellular, Coal India, BHEL and HDFC declined. The previous high was 3.89 per cent in March this year. Similarly, prices of pulses fell -23 percent, as compared with (-) 22.51 percent in September. The average price of the Indian basket of crude oil rose to $56.06 a barrel in October from $54.52 in September.

Pan, tobacco and intoxicants saw high inflation and settled at 6.91 per cent. Clothing and footwear (4.76), housing (6.68), and fuel and light (6.36) were costlier on sequential basis. Recently, the Goods and Services Tax (GST) Council, even after pruning the 28 per cent slab, chose to keep the above items in the top slab.

Separately, annual industrial output grew a lower-than-expected 3.8 percent in September, compared with the forecast of 4.2 percent by economists in a Reuters poll, data released on Friday showed.