India’s CPI inflation came in at its 16-month high value of 4.62 per cent in October 2019 due to a sharp increase in food prices, breaching the RBI’s medium-term inflation target of 4 per cent; the inflation was 3.99 per cent in September 2019. The reading was above the market consensus of 4.35 per cent. Meanwhile, core CPI fell to 3.3 per cent from 4.5 per cent, driven by household goods and services, personal care, health, and housing. Food inflation came in at 6.9 per cent Y-o-Y vs. 4.7 per cent previously. The large weight of food articles in the index translates to about 100bps increase in headline CPI. However, fuel prices and core inflation eased off due to which the increase in headline inflation was contained at 60bps.