March consumer price inflation rises 9.47%

Retail inflation surged to 9.47% in March because of higher prices of milk, vegetables, protein-based items and edible oil products.

Retail inflation, based on the Consumer Price Index (CPI), was 8.83% in February, as per the government data release here today.

Among other items, prices of cereal and its products saw a rise of 2.78% over the March 2011 level.

The prices of milk and products rose by 15.22%, while oils and fats turned costlier by 14.20% during the month, year-on-year basis.

While sugar saw a marginal rise of 3.78% in March, 'pulses and products' were up by 4.89%, over the same month last year.

Prices of egg, fish and meat shot up 10.06%, while non-alcoholic beverages and vegetables became costlier by 10.20% and 9.55% respectively.

Prices of fuel and light, and clothing, bedding and footwear segments also remained in the double-digit.

Inflation rates for rural and urban areas were 8.79% and 10.30% respectively in March.

According to the revised data, the inflation rates for rural and urban areas were 8.36% and 9.45% respectively in February.

The All-India CPI is in addition to the three retail price indices -- for agricultural labourers, rural labourers and industrial workers --  prepared by the Ministry of Labour.

Meanwhile, inflation based on Wholesale Price Index showed a marginal decline to 6.89% in March, as per the WPI data released earlier this week. 

 

Retail price pressures could build up in coming months as the country is yet to pass on a rise in global crude oil prices to consumers.

The Reserve Bank of India, which unlike other central banks uses mainly the wholesale price index for monitoring inflation, slashed policy rates by a steeper-than-expected 50 basis points on Tuesday to boost sagging economy.

The annual consumer price inflation data (CPI), which was launched in February, measures retail prices in major food groups, fuel, clothing, housing and education across rural and urban India.