The Reserve Bank of India targets a retail inflation rate of 4%, with a tolerance band of 2%-6%.
The inflation figure is higher than than the 4.20% suggested by a poll among 30 economists that was conducted by Reuters. November’s heavy rains damaged perishable fruit and vegetable crops, the news agency quoted Rupa Rege Nitsure, group chief economist at Larsen & Toubro, as saying. “We have seen that translated into price rises for onions, tomatoes and other perishable commodities.”
Consumer price inflation fell to a record low of 1.46% in June following a drop in food prices, but has risen steadily since then.
Growth in factory output also slowed to 2.2% in October, down from 3.8% in September, the data showed.