Retail inflation surges to 5-month high at 3.81% in March

13 Apr 2017 Evaluate

Surging to a five-month high, India’s retail inflation for the month of Mach climbed to 3.81% in March 2017 from 4.83% in march 2016 and 3.65% in February 2017, on the back of costlier protein items, edible oils and non-food products like fuel and light. Though, it remained below the Reserve Bank of India’s forecast for an average of 5% inflation for financial year 2016-17.

As per the data of the Central Statistics Office (CSO), Ministry of Statistics and Programme, the Consumer Price Index (CPI) (Rural, Urban, Combined) on Base 2012=100 for March 2017, stood at 3.75%, 3.88% and 3.81% respectively compared to 5.70%, 3.95% and 4.83% respectively in March 2016. The Consumer Food Price Index (CFPI) for all India Rural, Urban and Combined for March 2017 stood at 1.85%, 2.27% and 1.93% respectively in March 2017.

The data also showed that the General indices for the month of March 2017 for Rural, Urban and Combined at 132.8, 128.6 and 130.8 respectively. The CFPI for Rural, Urban and Combined for the same month were 132.2, 130.9 and 131.7 respectively.

According to the data, retail fuel inflation accelerated to 5.56% in March from 3.9% in the previous month even as food prices rose 1.93%, slower than the 2.01% increase in the previous month. Protein rich items such as milk & products and eggs were costlier during the month with inflation prints of 4.69% and 3.21% respectively. Prepared meals, snacks and sweets prices were also high, as prices grew by 5.65%. Further, vegetables continued to remain in the negative zone with deflation of (-) 7.24% and pulses declined by 12.42% in March 2017.