Food price inflation climbed to 1.90 percent from 1.25 percent.
According to the data furnished by the Ministry of Statistics & Programme Implementation, October's consumer price index (CPI) inflation rose to 3.58 per cent from 3.28 per cent reported for September.
India's headline inflation accelerated in October, driven by a recovery in food prices as unseasonal rains affected supply of fresh produce.
The YoY CPI in urban areas ruled higher at 3.81 per cent, while in rural India it rose by 3.36 per cent.
Higher inflation was also noted in protein rich items like oils and fats, eggs, and milk (and its products).
Inflation for the month of October stood at 4.20 per cent in 2016. However, fruits were comparably cheaper in October on sequential basis.
Individual announcements of pay revisions by various state governments, which will continue into 2018-19, will add to inflationary pressures, particularly given that some states are implementing the increases retrospectively, entailing the release of arrears, said Nayar of ICRA. It was (-) 22.51 per cent in September. Analysts polled by Reuters had expected October's retail inflation at 3.46 percent, up from 3.28 percent in September.
The prices of pan, tobacco and intoxicants saw a sharp rise of 6.91 per cent in October.
All eyes will be on the current fiscal's sixth bi-monthly meeting of the Monetary Policy Committee, headed by RBI Governor Urjit Patel, on December 5-6.