Awwal 11, 1432 / April 15, 2011, SPA -- India's inflation rate unexpectedly rose to 8.9 per cent in March, owing to higher fuel and manufacturing costs, government data showed Friday, according to dpa. Inflation, based on the wholesale price index, rose from 8.3 per cent in February, according to the data released by the Commerce and Industry Ministry. The January inflation rate was revised upward from 8.23 per cent to 9.35 per cent for Asia's third-largest economy. Inflation has risen despite successive rate hikes by the central bank and assurances from policymakers. The Reserve Bank of India has raised its key interest rate eight times over the past 15 months to check inflation. The repurchase rate now stands at 6.75 per cent. The new data would increase pressure on the government to address supply side inefficiencies even as elections take place in key states across the country, the IANS news agency reported. Prime Minister Manmohan Singh's government has come in for sharp criticism for its inability to check inflation, which peaked at almost 12 per cent last year. "Current figures show monetary policy intervention is not having the desired effect," Anis Chakravarty, director of Deloitte, Haskin and Sells, told the IANS news agency. Contrary to the central bank's forecasts, inflation has crept up, Chakravarty said. "There seems to be a consistent rise in inflation on fuel and power, largely driven by higher coal prices," he said. "It is also a matter of concern that inflation on manufacturing products amplified in March." Deputy Planning Commission Chairman Montek Singh Ahluwalia said persistently high inflation had raised doubts about achieving growth of 9 per cent in the current financial year, which ends March 31.
