Retail inflation rises to 6.95% in March, Consumer Price Index climbs due to rising food and oil prices

Retail inflation rose to 6.95 per cent in March this year from 6.07 per cent in the preceding month. Inflation based on Consumer Price Index climbed mainly due to rising food and oil prices. As per the Ministry of Statistics and Programme Implementation data released today, the inflation in the food basket was 7.68 per cent in March, up from 5.85 per cent in February 2022.

Retail inflation in March this year has breached the Reserve Bank of India's (RBI) upper tolerance limit of 6 per cent for the third month in a row. The retail inflation in January 2022 was 6.01 per cent. The government has mandated RBI to maintain retail inflation at four per cent with a margin of two per cent on either side.

RBI considers the retail inflation data for its key rate reviews. On Friday, RBI in its monetary policy review kept the key policy rates unchanged deciding to remain accommodative. However, RBI Governor Shaktikanta Das said the withdrawal of accommodation may be considered to ensure that inflation remains within the target while supporting growth.