(Representative image)

NEW DELHI: Retail inflation based on consumer price index accelerated to a 14-month high of 3.99 per cent in September against 3.28 per cent in August, government data showed on Monday. The figure came marginally below the Reserve Bank of India's (RBI's) 4 per cent target.

This is the 14th straight month when the inflation data has remained below the RBI's medium term target.

On year-on-year (yoy) basis, the inflation was 3.70 per cent in the September 2018.

Food price inflation in September came at 5.11 per cent against 2.99 per cent in August, ministry of statistics and programme implementation stated.

The inflation print for vegetables shot up to 15.40 per cent during the month from 6.9 per cent. Besides, price rise in pulses and meat and fish baskets for the reported month was higher over August.

However, there was a decline in inflation in the fuel and light segment.

In another set of data released by the ministry, wholesale (WPI) inflation eased to 0.33 per cent in September led by lower inflation in fuel and manufactured goods.

India Ratings and Research (Fitch Group) principal economist Sunil Sinha told news agency PTI that the central bank will continue with its accommodative policy stance and may go for further rate cut in the policy review of December 2019.

The Reserve Bank mainly factors in the CPI data while arriving at its bi-monthly monetary policy.

(With agency inputs)

