The National Statistical Office (NSO) reported on Tuesday that India’s retail inflation rose to a 17-month high of 6.95 percent in March, up from 6.07 percent the previous month, mainly to a strong increase in food costs.
The National Statistical Office (NSO) announced two critical economic numbers on April 12 that once again highlighted the Indian economy’s low-growth, high-inflation or stagflation threat: inflation at nearly 7% and factory output at less than 2%. With inflation expected to rise in April, the Reserve Bank of India may find itself with little choice but to begin raising interest rates in June.
According to government figures issued on Tuesday, consumer price-based inflation increased to 6.95 percent in March, owing primarily to higher food prices. In February, inflation based on the Consumer Price Index (CPI) was 6.07 percent. In March, food inflation increased to 7.68 percent, up from 5.85 percent the previous month.
Retail inflation has stayed over the Reserve Bank of India’s comfort zone for the third month in a row. The government has mandated the RBI, which primarily considers retail inflation when formulating its bi-monthly monetary policy, to keep inflation between 2 and 6%.
