Retail inflation for March has also climbed to 6.95 per cent, a 17-month high, as food prices went up.
The full impact of local fuel prices will begin to show in subsequent months.
Fuel prices were up 34.52% on the year versus 31.50% in February. The food index rose 8.71 per cent in March compared to 8.47 per cent in February.
“The high rate of inflation in March, 2022 is primarily due to rise in prices of crude petroleum and natural gas, mineral oils, basic metals, etc owing to disruption in global supply chain caused by Russia-Ukraine conflict,” the govt release said.
The RBI has taken note of the rising inflation and shifted its focus on tackling rising prices and withdrawal of accommodation.
It has also revised its inflation projection upwards to 5.7 per cent from 4.5 per cent earlier for FY23. The RBI takes into account the CPI or retail inflation and not the WPI-based inflation for arriving at monetary policy decisions.
