Retail inflation has quickened because of higher fuel prices and might turn out to be a big headache for everyone
During February, retail inflation, as measured by the consumer price index, touched a three-month high of 5%. Inflation during a month is the rate of price rise in comparison to the same month in the previous year. Retail inflation had stood at 4.1% in January. A major reason behind accelerating inflation has been the rise in petrol and diesel prices for vehicles, which rose by 20.6% and 22.5%, respectively. Petrol and diesel prices have been rising on account of higher oil price. The price of the Indian basket of crude oil stood at $67.4 per barrel as of 11 March, a little more than double the average price for March 2020, which was at $33.4 per barrel. India imports the bulk of the oil that it consumes.