December 4, 2009 9:19 AM

printer

Food inflation surges to 17.47 % in third week of Nov

Food inflation surged to 17.47 per cent in the third week of November, fuelled by expensive onions and other essentials, prompting experts to ask RBI to tighten its monetary stance.Food inflation stood at 15.58 per cent a week ago. Rice and wheat prices also rose over 10 per cent on anyear-on-year basis. However, the rise in prices of potatoes that have beensurging, declined to 94.17 per cent on yearly basis, againstover 100 per cent increase a week ago. With the economy on upswing, analysts said the risingfood prices should prompt the government and the Reserve Bank of India to shift their focus on controlling inflation,otherwise it would increase manufacturing inflation as wellRBI itself is in agreement that it would have to reassess the accommodative policy stance going forward, since the economy is on a rebound and prices are rising. The Prime Minister's Economic Advisory Council Chairman, C Rangarajan, has said food prices must be controlled, otherwise they have a tendency to lead to manufacturing inflation. This will require monetary action by RBI, especially money supply management.

Most Read
View All arrow-right

No posts found.