April 13 (Reuters) - India's retail inflation quickened AZN4SQJGO to 3.40% year-over-year in March from 3.21% in February, government data showed on Monday.
A Reuters poll had projected retail inflation at 3.48%.
RADHIKA RAO, SENIOR ECONOMIST, DBS BANK, SINGAPORE
"March inflation numbers were modestly higher, signalling the first round of price pressures in wake of the Middle East crisis. Input costs were selectively passed on to end consumers, and food costs continue to normalise, besides precious metal coming off the boil but still up double digits on the year.
We expect the impact of higher energy prices to gradually percolate in the coming months as replacement supplies arrive with a lag, while monitoring the risk of a fuel price increase in the coming weeks.
Core inflation, meanwhile, stayed below 4%, reducing the need for the central bank to assume a hawkish stance in the near-term. Impact of higher oil and gas prices are likely to be more material in the WPI index."
UPASNA BHARDWAJ, CHIEF ECONOMIST, KOTAK MAHINDRA BANK, MUMBAI
"The CPI inflation came in line with our expectations. We expect the trajectory to continue to trend higher, while remaining watchful on the risks from sub-par monsoons and second order pass through of higher input prices and weakening INR."
"However, we expect the RBI to maintain status quo on rates in the foreseeable future as more clarity emerges between the balance of risks between growth and inflation."
(Reporting by Urvi Dugar and Kashish Tandon; Compiled by Abhinaya V; Editing by Ronojoy Mazumdar)
