Retail inflation rose in March due to higher food and oil prices
India's retail inflation for March 2022 rose to a 17-month high of 6.95 per cent from 6.07 per cent in February 2022 mainly due to rising food and oil prices.
Food inflation for March rose sharply to 7.68 per cent, while it was 5.85 per cent in February 2022.
In October 2020, retail inflation had touched a high of 7.61 per cent.
The retail inflation in January 2022 was 6.01 per cent and with this, the inflation which is calculated on consumer price index (CPI), has breached Reserve Bank of India's (RBI) upper tolerance limit of 6 per cent for third month in a row.
Prices of fuel, meat and fish, milk products, cereals, pulses, spices, housing, clothing, light and footwear went up in March 2022 compared to February.
In March 2021, retail inflation was 5.52 per cent while food inflation was 4.87 per cent.
Food inflation in February was 5.85 per cent, higher than 5.43 per cent recorded in January 2022.
RBI has been mandated by government to keep the retail inflation between 2 per cent to 6 per cent .
Retail inflation of 6.95 per cent recorded for March 2022 is much more than 6.35 per cent which was predicted by a Reuters poll.
The April 4-8 Reuters poll of 48 economists had suggested that inflation, as measured by CP, will rise to 6.35 per cent in March on an annual basis, from 6.07 per cent in February. That would be the highest reading since November 2020.