WPI inflation hits 5.7% in March

Food prices jumped by 9.9 % and fuel and power inflation surged to 11.22 %

India's wholesale price based inflation rose to three months' high of 5.7 % in March from 4.68 % in the previous month following sharper increase in food and fuel prices, government data showed Tuesday.

The country's main inflation figure based on the Wholesale Price Index (WPI) stood at 5.65 % in March a year ago.

Build-up inflation rate in the financial year ended March 31, 2014, was 5.7 % compared to a build-up rate of 5.65 % in the corresponding period of the previous year, according to data released by the ministry of commerce and industry here.

WPI inflation data for January is revised upward at 5.17 % from 5.05 % announced earlier.

Food prices jumped by 9.9 % in March as compared to 8.12 % in the previous month. Fuel and power inflation surged to 11.22 %.

An economist at Angel Broking, Bhupali Gursale said the March inflation data is disappointing and is much higher than the markets' expectations of 5.3 %.

"This rise can be largely attributed to higher inflation in perishable food items as well as components of fuel such as coal, LPG and diesel," Gursale said.

There was a sharp increase in vegetables, fruits, milk, egg, meat and fish prices.

Potato became costlier by 27.83 % during the month under review year-on-year. Fruits prices jumped by 16.15 %. Milk became costlier by 9.47 % and eggs, meat and fish prices surged by 11.19 %.

Core inflation also inched higher to 3.5 % in March from 3.2 % in the previous month.