PRESSURE ON FOOD PRICES TO INCREASE NEXT FISCAL

RETAIL inflation quickened for the fourth successive month to 3.21 percent in February from 2.74 percent in January, with most of 47-basis-point rise driven by the food and beverages segment.

- 

During February, food inflation jumped to 3.47 percent from 2.13 percent in January, thanks mainly to the higher prices of vegetables, fruits and oils. Even though core inflation excluding food and fuel remained unchanged at 3.4 percent, rural households saw stronger price pressures with inflation printing at 3.37 percent, higher than the 3.02 percent seen in cities. The recent hike in cooking gas prices will exert further pressure on household budgets this month, while rising petrol prices may push transportation costs higher. In all, March inflation is expected to be upwards of 3.7 percent.