March retail Inflation at 9.47%, food inflation accelerates to 8.22%
Duvvuri Subbarao, governor of the Reserve Bank of India, spoke extensively to NDTV Profit about the thinking behind the rate cut, and what to expect going forward.
Indian consumer prices rose 9.47 per cent in the year to March, faster than the previous month's reading of 8.83 per cent, government data showed on Wednesday.
The consumer price-based food inflation accelerated to 8.22 per cent in March from 6.62 per cent in February.
Inflation as measured by the WPI eased marginally to 6.89 per cent in the year to March, data showed on Monday.
Retail price pressures could build up in coming months as the country is yet to pass on a rise in global crude oil prices to consumers.
The Reserve Bank of India, which unlike other central banks uses mainly the wholesale price index for monitoring inflation, slashed policy rates by a steeper-than-expected 0.50 per cent on Tuesday to boost sagging economy.
The annual consumer price inflation data (CPI), which was launched in February, measures retail prices in major food groups, fuel, clothing, housing and education across rural and urban India.
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