It has gone to seven months high level mainly due to higher prices of food and fuel. The previous high was 3.89 per cent in March this year.
Meanwhile, core inflation eased slightly in the month to 4.55 percent in October from September's 4.61 percent. Consumer price index rose to 3.58 percent year-on-year in October from September's 3.28 percent.
The rate of price rise in the vegetable segment nearly doubled to 7.47% as against 3.92% in September.
Consumer price inflation had fallen to a record low of 1.46% in June following a drop in food prices, but has recovered steadily since then.
Higher inflation was also noted in protein rich items like eggs and milk (and its products). On a sequential basis, core inflation slowed to 0.47 percent from 0.68 percent in the prior month.
Individual announcements of pay revisions by various state governments, which will continue into 2018-19, will add to inflationary pressures, particularly given that some states are implementing the increases retrospectively, entailing the release of arrears, said Nayar of ICRA. It was (-) 22.51% in September. Analysts polled by Reuters had expected October's retail inflation at 3.46 percent, up from 3.28 percent in September. The inflation for sugar and confectionery items increased and settled at 6.75 per cent. Spices saw some decline in price and settled at (-) 2.15 points. However, there is a risk that a surge in crude oil prices and recent softness in the Indian rupee might affect the imported inflation component.