Indian consumer-price inflation accelerated in March as the cost of egg, vegetables, fish and meat products rose, the government said.
The consumer-price index climbed 9.47 percent from a year earlier, compared with an 8.83 percent advance in February, the central statistics office said in a statement in New Delhi today. The gauge was created in January 2011 and today’s release gives a year-on-year rate for the third time.
The Reserve Bank of India cut interest rates yesterday for the first time since 2009 on slowing growth even as it said upside risks to inflation were limiting room for further easing. The country’s benchmark wholesale-price index rose 6.89 percent in March, slower than the 6.95 percent pace in February.
“An aggressive rate action is ruled out unless growth falls off the cliff,” Shubhada Rao, chief economist at Yes Bank Ltd. in Mumbai, said before today’s report. “Until September, there may not be any more cut by the Reserve Bank of India.”
She expects interest rates to be cut by a further 25 basis points in the year through March 2013.
The central bank predicts wholesale-price inflation will probably be at 6.5 percent by the end of the current financial year.