Retail inflation in India has hit its highest level in the last 16 months. The consumer price index (CPI) hit 4.62 percent in October, which is above the Reserve Bank of India's (RBI) medium-term target of 4 percent. This acceleration is largely due to the rise in food prices, onion in particular. Food inflation is now almost close to 8 percent in October compared to 5 percent levels seen in September. The only bright spot is core inflation which has eased in October to 3.5 percent bolstering hopes.