India’s consumer price inflation a tad lower at 4.28% in March
12 Apr 2018
Consumer price inflation in the country, based on the consumer price index (CPI), eased further to 4.28 per cent in March 2018 from 4.44 per cent in February after remaining above the 5.00 per cent levels in January and December last year.
Consumer price inflation stood at a low 3.89 per cent in January 2017.
The recent spikes in inflation levels have been attributed to a hardening of prices of essentials and the demand push caused by the government's decision to increase central government employees pay in line with the 7th Pay Commission recommendations.
The rising trend in inflation, however, seems to have supported a pick-up in industrial production.
The Reserve Bank of India (RBI) maintained a neutral stance in last week's monetary policy review, citing the still lurking inflation.
The current levels of inflation are far higher than the Reserve Bank of India's (RBI) 4.0 per cent medium-term target.
The rate of food inflation for consumers during March 2018 stood at 2.81per cent against 3.26 per cent in February.
Since January 2012, the government has been releasing consumer price inflation data based on combined data for rural and urban consumers.
Consumer price inflation for the rural areas stood at 4.44 per cent in March 2018 against 4.45 per cent in February and 3.35 per cent in March 2017.
For the urban areas, the consumer price inflation stood at 4.12 per cent in March 2018 against 4.52 per cent in February and 2.42 per cent in March 2017.
Food price inflation for rural areas stood at 3.63 per cent in March 2018 against 3.70 per cent in February and 1.85 per cent in March 2017.
Food price inflation for urban areas stood at 1.12 per cent in March 2018 against 2.45 per cent in February and (-) 0.31 per cent in March 2017.