CPI inflation at 13-month high of 3.4%

INDIA'S HEADLINE RETAIL inflation rose to a 13-month high of 3.4% year-on-year in March, edging up from 3.21% in February, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Monday.

- KULDEEP SINGH

The rise was largely driven by higher food, fuel and gold prices.

The impact of the West Asia war on the consumer price index (CPI) was moderate, as oil companies refrained from hiking auto fuel prices due to strong refining margins and excise cuts by the government.

However, the index may increase in the coming months.

The headline inflation figure remained below the RBI’s medium-term target of 4% for the 14th consecutive month. EVEN WITH AN early resolution of the West Asia crisis, global crude oil prices are likely to average around $85-90 per barrel in FY27, and households may have to share some of the burden.

Moreover, there are also concerns about a higher probability of El Niño this year, with adverse implications for monsoon rains and thereby food inflation.