Retail inflation in India is not only rising to uncomfortable levels but also becoming more entrenched, which is likely to increase pressure on the Reserve Bank of India (RBI) to raise interest rates further. While the two-year high consumer price index (CPI) inflation print of 6.1% in October was primarily driven by higher food prices, core inflation also rose to a series high of 4.5%, suggesting broadening price pressures. Core inflation, which strips out food and fuel items, has been steadily rising this financial year. It rose from 3.7% in April to 4.3% in September and economists now see it rising close to 5% in the coming months.