NEW DELHI — India’s retail inflation edged up to 3.4 percent in March from a year earlier, according to data released Monday by the Ministry of Statistics, reflecting a modest increase driven largely by food prices.
The latest reading, based on the updated Consumer Price Index series with 2024 as the base year, was slightly higher than February’s 3.21 percent and January’s revised 2.74 percent.
Among individual categories, precious metals saw the sharpest price increases. Silver jewellery prices surged 148.61 percent, while gold jewellery rose 45.92 percent compared to a year earlier.
Food inflation stood at 3.87 percent in March, with higher prices for vegetables such as tomatoes and cauliflower contributing to the increase. However, several staples saw notable declines. Prices of onion, potato, and garlic fell by double digits compared to the same month last year, while pulses also became cheaper. Arhar and tur dal prices dropped 9.56 percent, and chickpea prices declined 7.87 percent.
Looking ahead, the Reserve Bank of India has projected overall inflation at 4.6 percent for the 2026–27 fiscal year, citing mixed pressures from global energy markets and domestic agricultural output.
“The pass-through of higher global energy prices has resulted in price increases in select fuels such as premium petrol, LPG, and diesel for industrial use. On the other hand, the near-term food supply prospects have been boosted by a robust rabi crop, providing some comfort,” RBI Governor Sanjay Malhotra said.
He added that inflation is expected to average 4.0 percent in the first quarter, 4.4 percent in the second, 5.2 percent in the third, and 4.7 percent in the fourth quarter of the fiscal year.
Despite the relatively stable outlook, Malhotra cautioned that risks remain, particularly from elevated global energy prices linked to tensions in West Asia and the possibility of El Niño conditions that could disrupt the southwest monsoon.
Core inflation, which excludes food and fuel, is projected at 4.4 percent for 2026–27, and is even lower when precious metals are excluded, suggesting underlying price pressures remain contained, he said. (Source: IANS)
