India’s retail inflation increased to 5.69% in December, the highest in four months, government data released on Friday showed.

The price rise indicator stood at 5.5% in November, 4.87% in October and 5.02% in September.

The Reserve Bank of India is tasked with keeping inflation at 4%, with a tolerance band between 2% and 6%.

Food inflation, which accounts for nearly half of the overall consumer price basket, rose to 9.5% at the national level. In urban areas, it was 10.42%. Food inflation at the national level was 8.70% in November and 6.61% in October.

As was the case in November, last month’s increase in inflation was driven almost entirely by the food and beverages segment, especially vegetables, rating agency ICRA’s Chief Economist Aditi Nayar told The Hindu.

“The outlook for the inflation for certain items like rice, wheat and pulses remains somewhat vulnerable, given the estimated fall in annual kharif production, as well as the lag in the ongoing rabi sowing season amid El Niño conditions,” Nayar added.

El Niño is a climatic phenomenon that weakens monsoon winds over many areas of the world, including India. This leads to reduced rainfall and lower agricultural productivity.

Seven states saw inflation of over 6% in December, surpassing the Reserve Bank’s threshold. These are Odisha (8.7%), Gujarat (7.1%), Rajasthan (6.95%), Haryana (6.7%), Karnataka (6.65%), Telangana (6.65%) and Maharashtra (6.1%).

The central bank’s Monetary Policy Committee had on December 8 decided to keep the repo rate unchanged at 6.50% for the fifth consecutive time. The repo rate is the interest rate at which the central bank lends money to commercial banks.

Central banks typically increase key lending rates at times of high inflation in economies. Higher key lending rates translate into high interest on loans disbursed by commercial banks. This, in turn, keeps a check on discretionary spending by consumers.