Inflation at 5-month high over higher fuel prices, could hit 5% in 2nd half

The rollout of a new sales tax from July also poses an upside inflation risk

Higher fuel costs drove up the country's headline inflation to its highest level in five months in March, data showed, vindicating a central bank decision last week to keep its policy rate on hold amid concern about price pressures.

Consumer prices rose by an annual 3.81 per cent, their fastest pace since October 2016, compared with February's 3.65 per cent, the Ministry of Statistics said on Wednesday.

The rise was lower than the 3.98 per cent forecast by economists in a Reuters' poll.

Retail fuel inflation accelerated to 5.56 per cent from 3.90, while gains in food prices slowed to 1.93 per cent