Retail inflation spiked to a six-month high of 5.59 per cent in December, settling a few notches below the upper tolerance limit of the RBI, amid rising Covid-19 cases — making it tough for the policy makers to choose between containing inflation and pushing growth.

Retail inflation rate as measured by the consumer price index rose to 5.59 per cent in December from 4.91 per cent a month ago. Retail inflation has been rising since October 2021. In July too the rate of price rise was 5.59 per cent but it slowed in the subsequent two months, before moving up from October.

Food inflation was at 4.05 per cent in December compared with 1.87 per cent in the preceding month.

In the food basket, inflation was on a higher side in cereals and products, eggs, milk, spices, and prepared meals, snacks and sweets segments.