Inflation rises to 5.7 percent on high food, fuel prices
Posted on Apr 15 2014 | IANS
New Delhi, April 15 : India's wholesale price based inflation rose to three months' high of 5.7 percent in March from 4.68 percent in the previous month following sharper increase in food and fuel prices, government data showed Tuesday.
The country's main inflation figure based on the Wholesale Price Index (WPI) stood at 5.65 percent in March a year ago.
Build-up inflation rate in the financial year ended March 31, 2014, was 5.7 percent compared to a build-up rate of 5.65 percent in the corresponding period of the previous year, according to data released by the ministry of commerce and industry here.
WPI inflation data for January is revised upward at 5.17 percent from 5.05 percent announced earlier.
Food prices jumped by 9.9 percent in March as compared to 8.12 percent in the previous month. Fuel and power inflation surged to 11.22 percent.
An economist at Angel Broking, Bhupali Gursale said the March inflation data is disappointing and is much higher than the markets' expectations of 5.3 percent.
"This rise can be largely attributed to higher inflation in perishable food items as well as components of fuel such as coal, LPG and diesel," Gursale said.
There was a sharp increase in vegetables, fruits, milk, egg, meat and fish prices.
Potato became costlier by 27.83 percent during the month under review year-on-year. Fruits prices jumped by 16.15 percent. Milk became costlier by 9.47 percent and eggs, meat and fish prices surged by 11.19 percent.
Core inflation also inched higher to 3.5 percent in March from 3.2 percent in the previous month.