Retail inflation in India, or consumer price index (CPI), has risen to its 23-month peak and stood at 6.07%in July. 

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A Reuters poll of economists expected retail inflation to register at 5.90% last month from a year ago.

Analysts surveyed by Reuters expected output at factories, mines and utilities to expand 1.5% in June from a year earlier. In May, contrary to a predicted contraction, output rose 1.2%.

The industrial output data are based on an old series not reflected in India`s current gross domestic product figures. As a result, analysts set little store by those numbers as a guide to the economy`s broader health, Reuters said. 

Reserve Bank of India (RBI) has set a target of 5% for retail inflation by March 2017. This is the fourth-month when inflation swam above the target. 

Earlier this month, Government of India accepted an official inflation target of 4% (plus or minus 2%) for the next five years. 

RBI will have to write a letter to the Government explaining causes if it misses this target.