Reserve Bank says, failed monsoon last year is not the only reason for food inflation but the changing food habits may also have triggered it. RBI Deputy Governor Subir Gokarn said in Mumbai, the country is witnessing a structural change in the food habits and RBI would soon come out with a study paper on its possible impact on food price inflation. Gokarn said that the rise in demand for sugar, milk and pulses indicated a diversification in the nutritional choices of the people. Food inflation stood at 16.90 per cent for the week ended June 12 and may rise further due to the cascading effect of the fuel price hike.
News On AIR | June 29, 2010 7:39 PM
RBI blames last year monsoon, changing food habit for inflation