The country’s Mar 2014 inflation, as gauged by Consumer Price Index (CPI), stood at 8.53pc against 7.93pc in Feb 2014 and 6.57pc in Mar 2013.
On month on month basis, inflation stood 0.96pc as against -0.32pc witnessed in Feb 2014. The analysts at Topline estimate that higher reading is attributable to the rise in perishable food prices like tomatoes, potatoes etc, though fall in petroleum prices provided some respite. To recall, petrol declined by 2.2pc in last month.
During 9-month (Jul-Mar) FY14, average inflation stood at 8.64pc compared to 7.98pc in same corresponding period and 7.36pc in FY13. Though new the govt’s fiscal reforms and sharp local currency depreciation pushed CPI at the start of the fiscal year, recent easing trend in food prices and currency provided some relief.
“The number is in line with our estimation and we foresee CPI to stay around 8.5-9.0pc in full year FY14,” said the analysts.