Inflation hit RBI’s 6% ceiling in October, targeting rate policy | Today’s news

The food and beverage division, which makes up a significant share of the consumer inflation basket, should see inflation above 8% in October, according to Icra. The increase is likely to be across the board across food sub-segments, said Aditi Nayar, chief economist at Icra.

“Part of the increase in headline inflation can also be attributed to the unfavorable base following the rationalization of the Goods and Services Tax (GST),” Nayar said.

The expected increase marks a departure from the relatively benign inflationary environment towards the end of 2025, when retail inflation fell to 0.04% in October. Since then, inflation has steadily strengthened, with food prices playing an increasingly important role.