Retail inflation rises to 5% in October on dearer food items

New Delhi: Rising for the third straight month, retail inflation climbed to 5 percent in October due to costlier pulses and other food items.

The Consumer Price Index (CPI) based inflation in September stood at 4.41 percent. In October 2014, the retail inflation was 4.62 percent.

Overall consumer food inflation during the month rose to 5.25 percent in October, government data showed Thursday.

Retail inflation in pulses and products category rose to a staggering 42.20 percent in October.

While the price rise in the food and beverages category was at 5.34 percent in October, inflation in cereals and products was also higher at 1.46 percent.

Retail inflation in vegetables and fruits stood at 2.42 percent and 1.98 percent respectively in October.

However, among other protein rich items such as meat and fish, the rate of price rise has slowed to 5.01 percent.

Likewise, rate of retail price rise in milk and its products was 4.79 percent.

During the month, eggs also turned cheaper at 0.59 percent.

As per the data from the Ministry of Statistics and Programme Implementation (MOSPI), inflation in sugar and confectionery category remained in negative zone at (-)10.47 percent.

The price rise in spices category was higher at 9.82 percent and for non-alcoholic beverages at 4.31 percent.

In the rural areas, retail inflation rose to 5.54 percent and for urban sector it was at 4.28 percent.

The RBI takes into account retail inflation while formulating monetary policy. The central bank's retail inflation target is 5.8 percent by January 2016.