Inflation for the month of March in India increased to 9%, year-over-year, according to Marketwatch. That’s more than 0.50% faster than the annual rate in February, and crushes expectations for an 8.4% rise.
Energy costs continue to rise, like elsewhere, but manufactured goods prices are also rising suggesting that India is clearly seeing fuel costs bleed into its core.
Food inflation slowed, but here are the key drivers:
- Fuel: 12.92% year-over-year in March (11.49% in February)
- Manufactured goods: 6.21% year-over-year in March (4.94% in February)
It now looks likely next month will see further rate hikes from the country’s central bank, and the Sensex index was down 1.57% on the news.