Retail inflation rose marginally to 3.4 per cent in March from 3.21 per cent in February, according to data released by the government on Monday. The prices have been affected by supply chain disruptions caused by ongoing tensions in the Gulf countries. Based on the Consumer Price Index (CPI) data, the rate of increase in food prices in March was 3.87 per cent, higher than 3.47 per cent in February. Retail inflation in rural areas was recorded at 3.63 per cent, while retail inflation in urban areas was recorded at 3.11 per cent.
Gold and silver adjust crude oil prices for inflation
Crude oil prices saw a sharp increase in March. However, the decline in gold and silver prices significantly offset this increase. Despite this increase in inflation, inflation has remained below the Reserve Bank of India’s medium-term target range of 4 per cent (2-6 per cent ) for 12 consecutive months under the revised framework. According to data released by the Ministry of Statistics and Programme Implementation, food inflation rose to 3.87 per cent in March from 3.47 per cent in February. Food inflation has the largest weight in the CPI basket. Furthermore, inflation in the category of electricity, gas and other fuels stood at 1.65 per cent.
Relief continues in the prices of garlic, onion and potato
The prices of some key kitchen items continued to decline in March. Garlic prices declined by 10.18 per cent, compared to 31.10 per cent in February. Onion prices declined by 27.76 per cent, slightly less than the previous month’s decline of 28.20 per cent. Potato prices also remained in the negative zone (-18.98 per cent ), compared to -18.47 per cent in February. Housing inflation stood at 2.11 per cent in March, compared to 2.12 per cent in February. Inflation in clothing and footwear was recorded at 2.75 per cent, compared to 2.81 per cent in February.
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(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)
