The Planning Commission said on Monday that food inflation will come down next month from a more than a decade's high of around 20 per cent, as apprehensions about adverse effect of drought are easing. Planning Commission Deputy Chairman Montek Singh Ahluwalia told reporters in Delhi that inflation at the moment is not caused by excess money supply but is dominantly on account of surge in food prices. RBI is scheduled to review its monetary policy stance later this month and has dropped hints of tightening money supply. Following widespread drought and floods in various parts of the country, food inflation climbed to more than a 10-year high of 19.95 per cent in December, driven mainly by higher prices of potato, other vegetables and pulses. According to latest figures, food inflation stood at 19.83 per cent during the third week of December.
News On AIR | January 4, 2010 9:29 PM
Food inflation to come down next month: MS Ahluwalia