Consumer prices up 6.95 yy in March vs February39;s 6.07
Consumer food inflation up 7.68 yy in March vs 5.85 in Feb
Economists expect central bank to hike rates in June

NEW DELHI, April 12 Reuters India39;s retail inflation accelerated to near 7 yearonyear in March, its highest in 17 months and above the upper limit of the central bank39;s tolerance band for a third straight month, putting pressure on it to raise policy rates.

Annual consumer pricebased inflation in March touched 6.95, pushed by rising prices of fuel products and some food items. The print was higher than the 6.35 yearonyear forecast by economists in a Reuters poll, and 6.07 in the previous month.

Economists said Tuesday39;s inflation numbers could prompt the central bank to raise rates as early as June as the next month39;s inflation could rise further due to higher retail fuel prices.

With the MPC Monetary Policy Committee having signalled an imminent stance change, the rate hike cycle may begin as early as June, if the next inflation print doesn39;t significantly cool off from the March level, said Aditi Nayar, economist at ICRA.

We expect to see 5075 basis points of rate hikes by the end of September, she added.

Food prices, which contribute to nearly half of the consumer price index CPI, climbed 7.68 yearonyear in March, compared with 5.85 a month before.

The full effect of crude oil price rises on food and other items will be seen in April as the Indian government delayed the passthrough…