Together, accommodation and private road transport costs continued to account for close to two-thirds of CPI-All Items inflation in October.
Food inflation edged down to 1.7 percent in October from 2.1 percent in September. Price increases of both non-cooked food and prepared meals weakened to below 2 percent in October, from 2.3 percent and 2.0 percent respectively in September.
Prices of oil-related items in the CPI also rose at a slower pace in tandem with the moderation in global crude oil prices. However, services inflation inched up to 3.1 percent in October, from 3.0 percent in September, on account of astronger pickup in the costs of holiday travel and household services.
CPI-All Items inflation will remain elevated in Q4 2012 and Q1 2013, reflecting significant contributions from imputed rentals on owner-occupied accommodation and car prices. For the full year, CPI-All Items inflation is likely to come in at slightly above 4.5 percent in 2012 and ease to 3.5-4.5 percent in 2013.