Rise in inflation seasonal; will remain below 4%: Garg
Economic Affairs Secretary S C Garg today attributed the rise in both wholesale and retail inflation numbers to seasonal factors and expressed hope that the rate of price rise would remain below the 4 per cent limit for the fiscal.
"Retail inflation at 3.58 per cent. Wholesale price inflation at 3.59 per cent. Inflation riding from last month s levels largely on account of food especially vegetables and protein products," Garg tweeted.
As per the Consumer Price Index (CPI) data released yesterday, retail inflation rose to a 7-month high to 3.58 per cent in October on costlier food items while Inflation, based on wholesale rates, shot up to a six-month high of 3.59 per cent as prices of food items and fuel rose sharply.
"Hopefully, increasing trend prove to be seasonal and we will continue to have sub 4 per cent inflation," he said.
Retail inflation, a key input for RBI in setting the key interest rate, has been rising consistently since June amid a slowdown in factory output measured on Index of Industrial Production (IIP).
The Monetary Policy Committee headed by RBI Governor is entrusted with the objective of achieving the medium-term target for retail inflation of 4 per cent within a band of +/- 2 per cent, while supporting the growth.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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