Retail inflation up for 3rd month in row

Zee Media Bureau

New Delhi: Retail inflation moved up for the third successive month in October due to the impact of rise in the price of food items. The industrial output growth slowed in September indicating a slowdown in the manufacturing growth. 

Data released by the Central Statistics Office (CSO) on Thursday showed the consumer price index rose an annual 5% in October compared to 4.41% in September. In rural areas retail inflation was 5.54% in October, while in urban segments it was 4.28%. 

The consumer food price index rose 5.25% in October compared with 3.88% in September. The biggest factor leading to the price rise was the price of pulses which rose 42.2% in October.

The RBI is expected to keep a close watch on the inflation before taking any further action on interest rates.