India: Food Inflation Eases but Rising Inflation still an Overall Problem

January 23rd, 2011
in Background

India food  International Business Times:  Food inflation eased for the second straight week due to lower fruit and vegetable prices, data showed on Thursday, but an acceleration in headline inflation in December is likely to put pressure on the central bank to raise rates at a policy review next week.

Follow up:

Food inflation has been in double digits for most of the past year despite a series of central bank rate hikes, prompting a central bank deputy governor to say that monetary tools are largely ineffective.  Unseasonal rains during the October-November have led to crop failures, creating shortages and higher prices.  Read more at IB Times.....









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