Wholesale inflation soars to 4-month high

Wholesale inflation returned to above 2% in October, reaching a four-month high, versus 1.84% recorded a month back. The indicator rose to 2.4% led by food inflation to 13.5% as vegetables prices surged over 60% in October.

Earlier this week, consumer inflation came in at a 14-month high of 6.2%, breaching the RBI’s tolerance band of 2-6% and dashing hopes of a rate cut in the December meeting of the Monetary Policy Committee (MPC). Food inflation simmered in double digits to a 15-month high, as vegetable prices galloped.