For the fourth consecutive month, retail inflation has fallen within the Reserve Bank of India’s upper margin of 6%. Just released government data showed that in the month of March retail inflation climbed to 5.52%, mainly due to higher food prices.

In February, measured by the consumer price index (CPI), retail inflation stood at 5.03%.

Earlier this month, the RBI had projected the retail inflation at 5% in the January-March quarter of 2020-21 and 5.2% in the first two quarters of the current fiscal.

Last month-end, the government had asked the RBI to maintain retail inflation at 4% plus or minus 2%, for another five-year period ending March 2026.

The inflation in the food basket rose to 4.94% in March versus 3.87% in the preceding month, as per data released by the National Statistical Office (NSO).

Inflation in ‘fuel and light' category was 4.50% during March versus 3.53% in February.