Food Inflation at 7-Week Low, Price Pressures Remain

Food Inflation at 7-Week Low, Price Pressures RemainInflation in India does not seem to settle down soon. In the week ended on June 25, food prices in India were edged up again. The increased price of coffee and fruits and vegetables increased the wholesale food price index to 190.8 from 189.8, a total increase of 0.5%. The food prices have been decreasing gradually in the past few months but the increasing demand for milk and meat may stabilize the declining rate of food inflation.

The data issued by the Ministry of Commerce and Industry on Thursday stated decrease in Inflation rate from 7.78 %to 7.61%. The experts believe the inflation rate to increase from 9.06% in May to 9.8 % in June.

With increase of state fuel price, the fuel price index settled for 12.67% and the primary article index stabilized at 11.56% on June 25th.

Since March, the Reserve Bank of India is tightening its monetary policy to get a partial control on the inflation. Last month, the RBI further revised its lending rate for the 10th time at cumulative rate of 2.75 % points to combat with inflation which is hovering at an immense rate of over 9%.

The inflation in India does not seem to be settling down as if now. The government is yet to release the data on June 14.