New Delhi: A spike in the prices of vegetables, fruits and milk & milk products sent the wholesale (WPI) and retail or consumer price inflation (CPI) into an upward spiral in March. The WPI based inflation rose to a three -month high at 5.70 percent in March from 4.68 per cent in February. WPI inflation had been declining since December.
The retail inflation (CPI) rose to 8.31 per cent from 8.03 per cent in February. This comes as a double whammy for the industry at a time when industrial production had contracted 1.9 per cent in February. Increase in inflation will tie the hands of the RBI which may not be able to slash interest rates to give a boost to industry. Average CPI inflation for FY14 stands at 9.5 per cent compared to 10.20 per cent last year.
