SME Times is powered by   
Search News
Just in:   • India needs more reforms to become $10 trillion economy: Gita Gopinath  • India, Belgium to deepen trade and investment ties: Piyush Goyal  • India’s economic growth poised to rebound as demand picks up: RBI bulletin  • Fiji govt introduces measure to reduce dependency on foreign labour  • India's seafood exports cross Rs 60,000 crore in FY25 to date, set for new record 
Last updated: 27 Sep, 2014  

inflation.THMB.jpg India food inflation edging close to double-digit

Inflation.jpg
   Top Stories
» India, Belgium to deepen trade and investment ties: Piyush Goyal
» India’s economic growth poised to rebound as demand picks up: RBI bulletin
» Auto component sector should build EV ecosystem before others catch up: Piyush Goyal
» PM Modi to inaugurate Bharat Mobility Global Expo 2025 today
» Success of 'StartUp India' means that today's India is dynamic, future-ready: PM Modi
SME Times News Bureau | 11 Aug, 2011
There seems to be no respite from rising food prices for the common man as official data released Thursday showed India's annual food inflation had risen sharply to 9.9 percent for the week ended July 30.

Food inflation had spiked to 8.04 percent in the week ending July 23 after a brief lull.

The latest rise in food inflation has been caused by rising prices of vegetables, especially onions, eggs, meat and fish, fruits and milk -- basically everything a household requires everyday.

The primary articles index reported an increase of 12.22 percent for the week under review as compared to 10.99 percent in the previous week, according to data released by the Commerce and Industry ministry.

The index for fuels and power, which has a 14.91 percent weight in the wholesale price index, inched higher at 12.19 percent percent during the week under review from 12.12 percent in the previous week.

The headline inflation levels still remain close to double digits.

The latest spike in food inflation will again put the Reserve Bank of India (RBI) in a quandary as it has already hiked key interest rates 11 times since January 2010 to tame inflation.

The frequent hikes have made credit costlier and industry has been clamouring for a stop to the rate increases. In a surprising move, the RBI had in July hiked the repo rate by 50 basis points to further moderate inflation.

But with signs of slowing down in industrial output and another financial crisis looming after the US sovereign debt rating downgrade, the RBI will be more cautious in hiking rates.
 
Print the Page Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
84.35
82.60
UK Pound
106.35
102.90
Euro
92.50
89.35
Japanese Yen 55.05 53.40
As on 12 Oct, 2024
  Daily Poll
Will the new MSME credit assessment model simplify financing?
 Yes
 No
 Can't say
  Commented Stories
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter