New Delhi, April 15 (IANS): India's retail inflation rose to 8.31 percent in March from 8.03 percent in the previous month, led by higher food prices, government data showed Tuesday.

According to data released by the Central Statistics Office (CSO), the Consumer Price Indices (CPI) based inflation accelerated to 8.89 percent for rural areas in March from 8.43 percent recorded in the previous month.

However, for urban areas, CPI based inflation declined marginally to 7.51 percent during the month under review from 7.55 percent recorded in February.

Food and beverages prices rose by 9.10 percent in March year-on-year. Vegetables became costlier by 16.80 percent and fruits became costlier by 17.19 percent in retail markets during the month under review.

Food prices rose sharply in the wholesale markets also.

According to data released by the ministry of commerce and industry earlier in the day, wholesale price based inflation rose to three months' high of 5.7 percent in March from 4.68 percent in the previous month.

The rise in inflation will force the Reserve Bank of India (RBI) to maintain a tight monetary policy, even though it is hurting growth.