Wholesale price-based inflation rose for the second consecutive month to 3.18 pc in March on costlier food and fuel, data released on Monday showed.
Vegetables inflation was at 28.13 per cent in March, up from 6.82 per cent in the previous month. However, inflation in potato cooled substantially to 1.30 per cent, from 23.40 per cent in February. Inflation in food articles basket was 5.68 per cent during March.
Inflation in ‘Fuel and power’ category also spiked to 5.41 per cent, from 2.23 per cent in February. The Reserve Bank, which mainly factors in retail inflation for monetary policy decision, had earlier this month cut interest rates by 0.25 per cent.
Retail inflation accelerated to 2.86 per cent in March from 2.57 per cent a month ago, last week data showed. For April-Sept period, the RBI has projected retail inflation at 2.9-3 per cent, mainly due to lower food and fuel prices as well as expectation of a normal monsoon.