Retail inflation based on the Consumer Price Index (CPI) rose to 6.95 percent on Tuesday, 12 April, due to higher price of food items, as per data released by the Ministry of Statistics & Programme Implementation (MoSPI).
This is the third consecutive month that CPI exceeded the upper margin of 6 percent set by the Reserve Bank of India (RBI). The central bank has a CPI target range of 2-6 percent until March 2026.
RBI Governor Shaktikanta Das attributed the inflation to global crude oil prices and uncertainly due to geopolitical tensions, reported Indian Express.
Retail inflation was at 6.07 percent last month.
Price Hike in Food, Beverages
The country’s food basket price based on the Consumer Food Price Index (CFPI) also witnessed a hike of 5.85 percent in March due to the sustained increase in prices of essential commodities and fuel, as per government data.
In the month of March, oil and fats prices jumped 18.79 percent, vegetable prices saw a rise of 11.64 percent, meat and fish surged 9.63 percent and spices rose 8.50 per cent.
India's Factory Output Recovers
However, India’s industrial output measured in terms of Index of Industrial Production (IIP), saw a growth of 1.75 percent Year-On-Year (YoY) to 132.1 in February, according to a separate report released by the MoSPI.
The 12.5 percent surge in industrial growth in FY2022 as compared to the contraction of (-)11.1 per cent rise in the corresponding period last year, the data showed.
Growth has been recorded on the back of electricity and mining sectors which rose YOY 4.5 percent each.
(With inputs from Indian Express.)