India's retail inflation accelerated to 7.35% in December on the back of rising food prices. However, core inflation comes in at 3.7 per cent, a slight increase from November, 2019.As per the government data, the food inflation rose to 14.12 per cent in December as against (-) 2.65 per cent in the same month of 2018. It was 10.01 per cent in November 2019.CPI has breached the upper end of the Reserve Bank of India's 2-6 percent target band for the first time since July 2016. In December, when the central bank kept its key interest rate unchanged after its monetary policy review, it cited "much higher than expected" inflation for its decision.In November, the retail inflation was recorded at 5.54 per cent, up from 4.62 per cent in October. Onion prices - an important food in Indian households contributed to the surge in food inflation that has picked up steadily since March.Governor Shaktikanta Das, last week said that price stability is the central bank's primary objective as continuing high inflation disproportionately affects the poor.RBI's next monetary policy review is scheduled for 6 February, a few days after the government presents the Union Budget in the parliament for the financial year 2020-21.