India’s retail inflation surged to a three-month high of 5.03 per cent in February, as against 4.06 per cent in the previous month, as petrol and diesel prices rose sharply, as per the data released on Friday.
Further, experts see prices pressures continuing given the rise in global prices across commodities and the rise in food prices. Those at Barclays peg fiscal 2021-22 (FY22) inflation projections at 4.8 per cent. For H1FY22, they see inflation averaging 5.2 per cent, but moderating to 4.5 per cent in H2FY22.
“The non-food and non-fuel (core inflation) is likely to remain at elevated levels. The rise in inflation could come in the way of economic recovery and can pose a challenge to the Reserve Bank of India in maintaining an accommodative policy stance,” said Madan Sabnavis, chief economist at CARE Ratings.