Consumer price inflation rises to 9.47 percent

April 18th, 2012 - 3:04 pm ICT by IANS  

New Delhi, April 18 (IANS) Inflation based on consumer prices rose to 9.47 percent in March as compared to 8.83 percent in the previous month, led by sharp increase in food prices, government data showed Wednesday.

Consumer based general food prices rose by 8.22 percent in March as compared to 6.62 percent in the previous month.

Price rise was sharper in urban areas. Inflation based on Consumer Price Index (CPI) rose by 10.30 percent in urban areas while it grew by 8.79 percent in rural areas, according to data released by the Central Statistics Office.

General food prices in urban areas jumped by 9.15 percent while it grew by 7.72 percent in rural areas in March year-on-year.

The Reserve Bank of India (RBI) in its annual monetary policy for 2012-13 announced Tuesday lowered key policy rates by 0.50 percent to revive growth and investments.

However, the persistently high inflation will limit the chances of any further rate cuts.

As per the government data released early this week, inflation based on Wholesale Price Index (WPI) declined marginally to 6.89 percent in March as compared to 6.95 percent in the previous month mainly because of softening in price rise of manufactured products.

The RBI said the headline inflation will remain “sticky” at around the current level in 2012-13 as well.

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