In October, inflation based on the Consumer Price Index (CPI) spiked to a 16-month high of 4.62 per cent on costlier food items.

The expected rise in inflation comes despite the price of oil, India’s biggest import, falling by more than 7 per cent.

Inflation based on Wholesale Price Index (WPI) was at 2.02 per cent in June this year and 5.27 per cent in July 2018.

CPI (Consumer Price Index) retail inflation is projected at 3.1 per cent for the second quarter this fiscal.

Food prices have risen due to lower-than-expected monsoon rains over the past two months.

Core consumer inflation, which strips out food and fuel prices, was estimated at an annual 4.09-4.11 per cent in June.

The fiscal deficit target for this financial year was reduced to 3.3 per cent from 3.4 per cent.

Inflation in food articles hardened with steep rise in prices of vegetables during April.

By the government data released on Monday, food inflation accelerated to 1.10 per cent in April from 0.30 per cent in March this year.