Editor's Pick: At 6.95%, retail inflation continues to breach RBI threshold of 6%

Retail inflation accelerated sharply to 6.95% in March, the fastest pace of price gains in almost a year and a half, and marked the third straight month when inflation exceeded the Reserve Bank of India’s tolerance threshold of 6%. A surge in food price inflation, which quickened to 7.68% from 5.85% in February, combined with rising fuel prices and producers passing on higher commodity prices and input costs to consumers across goods and services to drive the overall Consumer Price Index (CPI)-based inflation print to a 17-month high. Consumers in rural India faced a higher level of inflation than urban residents, with overall rural inflation at 7.66%. “Our analysis shows the poor are bearing the burden of inflation the most, given that food which occupies the largest share of their consumption basket recorded the sharpest rise,” said Dharmakirti Joshi, CRISIL chief economist. The rising fuel prices and their ripple effects on transport and logistics costs are expected to intensify in April, economists said. “The complete transmission of global fuel prices is expected to be seen in April,” said Vivek Rathi, director, research at Knight Frank India. Transport and communication inflation, which reflects the pump prices of automobile fuels, touched 8%. Health costs, household goods and services, and personal care and effects saw an escalation in price pressures with inflation readings at 6.99%, 7.67% and 8.71%, respectively. While food and beverages inflation hit 7.47% in March, edible oils and fats quickened appreciably to 18.8% and inflation in vegetables saw the rate almost double to 11.6% from February’s 6.1%. Meat and fish prices recorded 9.63% inflation, up from 7.45% in February. Among the States, West Bengal recorded the highest retail inflation at 8.85% while Uttar Pradesh and Assam both clocked 8.19%. Coupled with joblessness and no social security, distress is bound to intensify. The report on unchecked inflation is worrying as it has spread across most categories. With no end in sight to Russia’s war on Ukraine, fuel prices have had a cascading effect on food and essential commodities. As pointed out by an editorial in The Hindu, the RBI must step in to control inflation. Was this newsletter forwarded to you? Head over to our newsletter subscription page to sign up for Editor‘s Pick and more. Click here The Hindu’s Editorials In the shadow of war: On Modi-Biden virtual summit Disease and the cure: On China’s zero COVID strategy The Hindu’s Daily Quiz The Khelo India University Games 2021 will commence in which State on April 24? Haryana Maharashtra Tamil Nadu Karnataka To find out the answer and play the full quiz, click here [logo] Editor's Pick 13 APRIL 2022 [The Hindu logo] In the Editor's Pick newsletter, The Hindu explains why a story was important enough to be carried on the front page of today's edition of our newspaper. [Arrow]( [Open in browser]( [Mail icon]( [More newsletters]( At 6.95%, retail inflation continues to breach RBI threshold of 6% Retail inflation accelerated sharply to 6.95% in March, the fastest pace of price gains in almost a year and a half, and marked the third straight month when inflation exceeded the Reserve Bank of India’s tolerance threshold of 6%. A [surge in food price inflation]( which quickened to 7.68% from 5.85% in February, combined with rising fuel prices and producers passing on higher commodity prices and input costs to consumers across goods and services to drive the overall Consumer Price Index (CPI)-based inflation print to a 17-month high. Consumers in rural India faced a higher level of inflation than urban residents, with overall rural inflation at 7.66%. “Our analysis shows the poor are bearing the burden of inflation the most, given that food which occupies the largest share of their consumption basket recorded the sharpest rise,” said Dharmakirti Joshi, CRISIL chief economist. The rising fuel prices and their ripple effects on transport and logistics costs are expected to intensify in April, economists said. “The complete transmission of global fuel prices is expected to be seen in April,” said Vivek Rathi, director, research at Knight Frank India. Transport and communication inflation, which reflects the pump prices of automobile fuels, touched 8%. Health costs, household goods and services, and personal care and effects saw an escalation in price pressures with inflation readings at 6.99%, 7.67% and 8.71%, respectively. While food and beverages inflation hit 7.47% in March, edible oils and fats quickened appreciably to 18.8% and inflation in vegetables saw the rate almost double to 11.6% from February’s 6.1%. Meat and fish prices recorded 9.63% inflation, up from 7.45% in February. Among the States, West Bengal recorded the highest retail inflation at 8.85% while Uttar Pradesh and Assam both clocked 8.19%. Coupled with joblessness and no social security, distress is bound to intensify. The report on unchecked inflation is worrying as it has spread across most categories. With no end in sight to Russia’s war on Ukraine, fuel prices have had a cascading effect on food and essential commodities. As pointed out by an [editorial in The Hindu]( the RBI must step in to control inflation. Was this newsletter forwarded to you? 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