Retail inflation shoots up to 6.95 per cent in March

Retail inflation quickened to 6.95% in March, compared to 6.07% in the previous month, driven by a sharp jump in food prices, official data released on Tuesday showed. A range of products have become expensive, driven by rising oil prices and broken supply chains due to the Ukraine war, the data showed. Shop-end prices, as measured by the Consumer Price Index, breached the Reserve Bank of India’s so-called tolerable limit of 6% for the third straight month, as food prices jumped 7.68% in March, against a rise of 5.85% in February. Overall, retail inflation now stands at a 17-month high. The higher prices have begun to bite into demand. Households are buying less daily-use goods and items, according to market intelligence firm Bizom.

It is for the third straight month that the retail inflation remained above the Reserve Bank of India's comfort zone. RBI, which mainly factors in the retail inflation while arriving at its bi-monthly monetary policy, has been tasked by the government to keep the inflation between 2 and 6 per cent.Oils and fats inflation stood at 18.79% in March, compared to 16.4% in February, while vegetable prices rose 11.64%, compared to a rise of 6.13% in the previous month. Pulses price rose 2.57%, a marginal decline compared to 3.02% in February. The CPI index on clothing and footwear rose 9.40% compared to an 8.86% increase a month ago. In the fuel and light inflation category, prices rose 7.52%.