NEW DELHI, Nov 12: India's retail inflation rose to 6.09 per cent in October, breaching the Reserve Bank of India's upper tolerance limit of 6 per cent, data showed.
The rate was higher than 5.54 per cent recorded in September and exceeded economists' estimate of 5.93 per cent.
Food inflation rose to 8.94 per cent in October from 7.74 per cent in September. Higher prices of onions, garlic and other food items contributed to the increase.
Inflation in the transport sector also rose to 5.84 per cent. Higher costs of other goods and services also affected overall inflation.
The RBI's inflation target is 4 per cent, with a tolerance band of two percentage points on either side. The acceptable range is therefore 2 to 6 per cent.
Retail inflation has remained above the RBI's 4 per cent target for five consecutive months since June. Economists said rising food prices and other cost pressures could make inflation control challenging in the coming period.
The rise in inflation could also affect the RBI's next monetary policy decision. The central bank's Monetary Policy Committee will take the next decision on interest rates.
