Mumbai: The retail inflation in the country surged to a five-month high of 5.59% in December. As per the data released by the Union Ministry of Statistics, the price rises in December moved closer to the upper limit of Reserve Bank of India`s (RBI) 2%-6% target, but remained lower than the consensus Reuters poll forecast of 5.80%.
Food prices, which contribute to nearly half of the consumer price index (CPI), surged 4.05% year-on-year in December, compared with 1.87% a month before. Prices of edible oil rose nearly one-fourth from a year ago. Retail fuel prices rose 10.95% in December year-on-year compared to 13.35% in the previous month.