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March CPI inflation at 5.52%, up from February's 5.03%

The combined food price inflation rose to 4.94 percent in March, as compared to 3.87 percent in February.

April 12, 2021 / 06:43 PM IST
Representative image

Representative image

Consumer Price Index-based inflation (CPI) for the month of March came in at 5.52 percent, rising from February's 5.03 percent.

Official data released on April 12 shows that retail inflation in March stayed within the Reserve Bank of India's (RBI) medium term inflation target of 4(+/-2 per cent) for the fourth consecutive month.

The combined food price inflation rose to 4.94 percent in March, as compared to 3.87 percent in February.

The upswing in food inflation was driven by the month-on-month rise in prices of oils and fats - which rose by 24.92 per cent in March - followed by the 15.09 per cent in prices of meat and fish, as per the data shared by the National Statistical Office (NSO) and Ministry of Statistics and Programme Implementation (MoSPI).

The non-alcoholic beverages segment surged by 14.41 percent, egg prices rose by 10.60 percent, fruits by 7.86 percent and pulses and products segment by 13.25 percent. However, the prices of vegetables went down by -4.83 percent and rate of cereals and products segment also marginally dropped by -0.69 percent.

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Both the food and general inflation was sharper in cities as compared to villages. The CPI (general) inflation surged to 6.52 percent in urban areas and 4.61 percent in rural regions. Similarly, the food inflation climbed to 6.64 and 3.94 percent in urban and rural areas, respectively.

Also read: IIP shrinks 3.6% in February owing to steep decline in manufacturing

In December, CPI inflation had come down to within the RBI’s target range after eight months of high inflation, at 4.59 per cent. Before that, the last time inflation was below 6 per cent was in March 2020. Since then, it has gone as high as 7.61 per cent in October.

The inflation numbers are factored in by the Reserve Bank of India (RBI) while deciding on its bi-monthly monitory policy. The central bank, which is adopting an "accommodative stance" to mitigate the economic impact of COVID-19, has kept policy rates unchanged since last year.
Moneycontrol News
first published: Apr 12, 2021 05:36 pm

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