India’s food inflation rises, another rate hike in offing
June 9th, 2011 - 1:51 pm ICT by IANSNew Delhi, June 9 (IANS) India’s food inflation for the week ended May 28 rose sharply by almost a percentage to 9.01 percent as prices of essential items like fruits, meat, milk and onions increased, official data showed Thursday.
Food inflation had dipped to 8.06 percent the week before. The persistently high inflation is expected to result in another rate hike from the Reserve Bank of India (RBI) when it conducts a mid-quarterly review of the monetary policy June 16.
Inflation has continued to reign high despite the RBI hiking key interest rates nine times in the past 14 months.
As per data released by the commerce and industry ministry, the annual food inflation rose to the highest level in at least six weeks.
The primary articles index too rose for the week under review to 11.52 percent, while those for fuels and power rose 12.46 percent.
The World Bank, in a recent report, cautioned that India’s economy could grow at a slower rate in the current fiscal as elevated inflationary pressures could cut into disposable incomes and household spending, thus resulting in a moderation in domestic demand.
The following are the yearly rise and fall in prices of some main commodities that form the sub-index for food articles:
Onions: 14.02 percent
Vegetables: (-) 0.2 percent
Fruits: 30.78 percent
Potatoes: (-) 2.87 percent
Milk: 8.49 percent
Eggs, meat, fish: 6.99 percent
Cereals: 5.77 percent
Rice: 2.69 percent
Wheat: 0.9 percent
Pulses: (-) 9.49 percent
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- Food inflation slips a tad to 8.96 percent - Jun 16, 2011
- Food inflation falls to 9.01 percent; will moderate further: Pranab - Nov 24, 2011
- India food inflation edging close to double-digit - Aug 11, 2011
- Food inflation dips marginally to 9.47 percent - Sep 15, 2011
- Food inflation falls to 8 percent; to drop further: Pranab (Lead) - Dec 01, 2011
- Food inflation falls a bit - Jun 02, 2011
- Food inflation rises to 9.80 percent; Pranab expresses concern - Aug 25, 2011
- Food inflation drops to 8.84 percent - Sep 22, 2011
- Food inflation slips marginally, still above comfort level - Oct 13, 2011
- Food inflation climbs to 9.13 percent - Jun 23, 2011
- Food inflation rises 9.41 percent; Pranab expresses concern - Oct 07, 2011
- Food inflation falls to 8 percent - Dec 01, 2011
- Food inflation rises to 9.13 percent - Sep 29, 2011
- Food inflation drops for the second week - Jul 07, 2011
Tags: articles index, bank of india, cereals, commodities, disposable incomes, food articles, household spending, industry ministry, inflation, inflationary pressures, moderation, monetary policy, New Delhi, nine times, onions, rate hike, rbi, reserve bank of india, rise and fall, six weeks