April 8, 2010 6:37 PM

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Food Inflation rises to 17.7%

Higher prices of milk, fruits and pulses pushed food inflation to 17.70 per cent for the week ended March 27. This fuelled expectations that RBI may further tighten rates in its annual monetary policy on April 20. Food inflation in the previous week stood at 16.35 per cent. With prices of essential items rising and fears of food inflation spreading to manufactured goods, the overall inflation for March, data for which is expected next week, is likely to cross the double digit mark. The overall inflation, which includes variation in prices of food and non-food items, was 9.89 per cent in February. Recently, RBI governor D Subbarao had also said that the apex bank will continue its exit from monetary stimulus policy to check high inflation and ensure sustainable growth.

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