NEW DELHI: Food prices accelerated for the second straight week in late-March, strengthening expectations of a hike in key policy rates when theBurst the Inflation balloon
Implications of a rising inflation rate
 
Reserve Bank of India (RBI) reviews its policy on April 20.

The food price index rose 17.70 percent in the 12 months to March 27, higher than an annual rise of 16.35 percent in the previous week, data showed on Thursday.

The fuel price index rose an annual 12.71 percent, a tad below the previous week's reading of 12.75 percent, while the primary articles index was up 14.50 percent year-on-year.

The Reserve Bank of India (RBI) unexpectedly raised rates in March by 25 basis points as headline inflation continued to remain above its perceived comfort zone of 5 percent for the fourth straight month.

India's chief statistician Pronab Sen on Wednesday said the RBI would have to further tighten monetary policy if prices continue to rise.

He has said inflation could cross 10 percent in March, higher than Febuary's reading of 9.89 percent, and then ease.