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All about the inflation spike: how, why & when

The consumer price index —or retail inflation—surged in October to 6.2%, breaching the Reserve Bank of India’s upper tolerance limit. Despite the RBI governor Shaktikanta Das’s warning of higher inflation in October, the 6.2% reading, which marks a 14-month high, came as a surprise. For the first time in 13 months, the inflation breached the 6% mark—the higher end of the RBI’s inflation target. The sharp rise in the prices of vegetables, fruit, edible oil and pulses contributed to the jump in food inflation. Edible oil prices increased by 9.5% in October due to supply disruptions in Southeast Asia, which saw global edible oil prices rise by 27%.

Live Mint

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