Food inflation: export of pulses still banned
NEW DELHI: According to weekly data released by the commerce and industry ministry on Thursday, the fifth straight week of rise in food inflation rate, based on wholesale prices, was pushed back to double digits in the second week of December.
High prices of food items, especially onions, led to a sharp spike in India’s annual food inflation to 18.32 percent for the week ended Dec 25, compared to 14.44 percent the week before.
According to Thursday’s data, the 52-week inflation rate for non-food articles rose to 22.4 percent for the week ended Dec 25 compared to 21.24 percent in the previous week.
The rise in onion prices, due to a crop failure in the main growing regions, and a consistent rise in rates of other essential commodities like vegetables, poultry, milk and fruits have again raised the chances of a rate hike by the Reserve Bank of India (RBI) in January.
The inflation rate for primary articles increased to a whopping 20.2 percent during the week under review, against a rise of 13.25 percent the previous week.
The index for fuels rose to 11.63 percent for the week ended Dec 25, compared to 10.67 percent in the previous week.
Finance Minister Pranab Mukherjee extended the ban on export of pulses indefinitely, and decide to release additional five million tons of wheat and rice to be sold through state-run fair price shops.
(News Editor- Naushin Fatima Khan)
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