Retail inflation expected around 4% in March after LPG hikes
Retail inflation is expected to climb to around 4% in March, up from 3.2% in February.
The main reason? LPG prices just went up, by ₹60 for homes and ₹115 for businesses, which means everyday costs, especially in places like restaurants and cafes, are likely to rise too.
Economists cite fuel as main factor
According to economists, higher fuel prices are the biggest factor behind this jump. On the bright side, stable vegetable prices might help keep food inflation from getting out of hand.
Economists from HDFC Bank estimated inflation at 4%, while a Reuters poll of 45 economists forecast 3.48%.
Plus, pricier edible oil is also making food inflation more expensive while higher LPG prices are also making rent and utility bills more expensive since they are all part of what goes into measuring inflation (also known as the consumer price index).