Inflation in India has reached to over three-year high of 7.41 per cent for the week ended March 29. It is mainly on account of rising prices of fruits and vegetables, pulses, cereals, condiment and spices and some manufactured items.

Inflation soared despite high base of 5.94 per cent in the corresponding week a year ago, belying market expectations in the range of 7.05 per cent.

During the week, prices of fruits and vegetables shot up by three per cent, that of pulses by 1.2 per cent, condiments and spices by two per cent and wheat and fish marine rose by one per cent each.

The high rate of inflation rate main force Reserve Bank of India(RBI) to take tough monetary measures. As a result be may see hike in CRR rate.
The annual credit policy is scheduled to be announced on April 29.

Categories: Business
Tags: CRR, fruits, inflation, RBI, Vegetables