Food inflation eases marginally to 9.42% from 9.48%

Food inflation eases marginally to 9.42% from 9.48%

New Delhi: India’s food price index rose 9.42% and the fuel price index climbed 12.79% in the year to 5 March, government data on Thursday showed.

Annual food inflation in early March eased from 9.52% recorded in the previous week as prices of onions and milk fell, while fuel inflation accelerated, on a jump in coking coal prices, from 9.48% a week earlier.

The primary articles price index was up 12.31%, compared with an annual rise of 13.96% in the prior week.

The wholesale price index-based inflation, the most widely watched gauge of prices in India, unexpectedly quickened an annual 8.31% in February on higher fuel and manufactured product prices, data showed on Monday, compared with 8.23% in January.

The Reserve Bank of India raised the repo rate , its main lending rate, by 25 basis points to 6.75%, and raised the reverse repo rate, or borrowing rate, to 5.75%.

Faced with persistently high inflation in Asia’s third-largest economy, the Reserve Bank of India (RBI) has been the most aggressive central bank in the region, lifting its key rates eight times since last March.