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New Delhi: India’s retail inflation rate rose to 3.81 per cent in March from February’s 3.65 per cent, mirroring a revival in household spending after months of waning demand triggered by a demonetisation-induced cash crunch.
The Reserve Bank of India (RBI), which kept its key lending rate unchanged last week, has warned of a looming inflation threat over the next 6-12 months, obliquely leaving the door ajar for an interest rate hike in 2017-18.
For 2017-18, RBI has projected retail inflation to average 4.5 percent in the first half and 5 percent in the second half.
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