Monday 13 February 2012 Government 2.0: The Road Ahead
Food inflation eases further to 10.05%

The government's decision to freeze exports of food grains and good monsoon rains has had a sobering effect on prices for the second successive week

New Delhi: India's food inflation eased to 10.05 per cent for the week ended August 14 from 10.35 per cent a week earlier, official data released on Thursday showed.

The government's decision to freeze exports of food grains and good monsoon rains has had a sobering effect on prices for the second successive week, reports IANS.

The fuel prices index, however, stayed steady at previous week's level of 12.57 per cent, data released by the Commerce Ministry showed.

The primary articles index rose at a slower rate at 14.75 per cent, compared to the previous week's increase of 14.85 per cent.

According to recently released data, wholesale price inflation, the measure for overall increase in prices, was at 9.97 per cent in July.

The rise in inflation has forced the Reserve Bank of India to turn hawkish in its monetary policy action. It had raised key interest rates by 25 basis points in its quarterly review in June.

The still high inflation could force another hike, something that the central bank has said it would not shy away from.

 

 
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