Consumer Price Index (CPI) for Inflation soared to a 16-month high of 6.95% for the month of March way beyond what economists were anticipating. This marks the third month of price rise index being above the 6% mark which is maintained as the RBI's 'tolerance zone'.
The real culprit as anticipated is oil, and more specifically edible oil. The sub-category of Oil and Fats saw an inflation rate of 18.7%. Even vegetable prices have been adding pressure with the heat wave coming in, March vegetable inflation rate soared to over 11%. The total Food Inflation thus escalating to 7.6%.
If one looks at the state-wise data West Bengal is facing the brunt of the price rise with a 8.8% inflation rate and not far behind in second place is Uttar Pradesh with 8.1%. Meanwhile, Punjab, Kerala and Tamil Nadu are all enjoying a sub 5% price rise index.