Inflation rate hit 1.5% in October

Higher food prices drove the marginal increase.

Headline consumer price index (CPI) inflation inched up to 1.5% YoY in October from September’s 1.4%, which is still below market expectations of 1.7%, according to an economic watch report from Bank of America Merill Lynch (BAML).

The marginal increase was driven by higher food inflation which increased to 2.9% YoY from 2.4% as price for fresh vegetables soared to 7.4% YoY from 4% in September.

Higher food price inflation was partially offset by marginal decrease in transport inflation to 0.8% YoY in October from 1.8%.

Inflation of other major CPI items including housing remained relatively stable in October.

BAML forecasts inflationary pressures to remain largely contained for the next quarter as import price is likely to be subdued.