Year-on-Year Food Inflation Hits 17.56% on January 23

Year-on-Year Food Inflation Hits 17.56% on January 23For the second consecutive week, the yearly food inflation picked-up pace, adding further evidence to support the speculation that more fiscal steps are on the way in the federal Vegetable vendor budget in order to try and control the price rises, post the Reserve Bank put in more strict monetary policies last week.

Analysts are of the opinion that any rises in prices of petrol and diesel as has been suggested by a Government panel on Wednesday would only further drive the inflation and could lead to more rise.

"If fuel prices are freed, that will lead to increase in fuel, food and wholesale price inflation, though politically I don't see that happening as of now", said Bibek Debroy, an economist at Centre for Policy Research.

In the 12 months up-to January 23, the food price index surged by 17.56%, which is higher than the yearly rise of 17.40% in the preceding week, as was confirmed by official data released on Thursday.



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