September 16, 2010 1:22 PM

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Food inflation shows an upward trend<br/>

Food inflation reached 15.10 per cent for the week ended September 4. Cereals, select vegetables and milk became costlier after rains disrupted the supplies. This figure, though not exactly comparable to the previous week&apos;s 11.47 per cent because it is calculated on the new series with 2004-05 as the base year, justified the RBI&apos;s move to raise its short term lending and borrowing rates at the monetary policy review today. This is the third consecutive week when food inflation has shown an upward trend, after a brief period of moderation in July and first half of August.

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