India retail inflation rose in October with the Consumer Price Index (CPI) at 7.61 per cent compared to 7.27 per cent in September.
The CPI for the month of September was however, revised to 7.27 per cent from 7.34 per cent.
The rise in food prices lifted retail inflation higher. The Consumer Food Price Index, increased to 11.07 per cent in October from 10.68 per cent in September.
Inflation is a major factor in the Reserve Bank India’s decision on repo rate as low lending rates may raise inflation. In its bi-monthly monetary policy meeting in October, the RBI kept its key interest rates unchanged and decided to maintain its accommodative monetary policy stance to support growth amid the pandemic.