NEW DELHI (Reuters)

India's wholesale price-based inflation accelerated to a four-month high of 2.36% year on year in October due to elevated food prices, as government data released on Thursday showed.

Inflation for October exceeded the 2.2% projected by economists in a Reuters poll, and rose from 1.84% in September. Food prices saw an 11.6% increase year on year, compared to a 9.5% gain in September. Notably, vegetable prices soared 63% year on year, up from a 48.7% jump in September, while cereal prices rose 7.9%, against an 8.1% rise a month prior. Prices of manufactured products increased by 1.5%, compared to a 1% rise in the previous month. However, fuel and power prices dropped 5.8%, following a 4% fall in September.

Headline retail inflation, a key metric for the country's central bank in determining policy rates, has averaged 5% over the past year. Food inflation has consistently remained above 8% due to weather shocks affecting the prices of essential items like vegetables and cereals.

In October, retail inflation reached a 14-month high of 6.2%, with food prices jumping 10.9%, diminishing hopes for an interest rate cut. Although India's rate-setting panel had eased its policy stance to "neutral" in October, Reserve Bank of India Governor Shaktikanta Das indicated that this change does not imply an immediate rate cut in the next meeting.