Indian food inflation rises 11.43%

Indian food inflation rises 11.43%The food inflation in India rose 11.43% this week, according to the latest data released on Thursday.

The fuel price index climbed 14.70% in the year to October 15. The food price index and fuel inflation stood at 10.60% and 15.17%, respectively in the previous week. The primary articles price index rose was up 11.75%, compared with an annual rise of 11.18%.

The Reserve Bank of India (RBI) increased its repo rate by 25 basis points to 8.5 percent on Tuesday. The central bank has raised its key benchmark rates 12 times in 18 months causing the growth in the country to slowdown. Market analysts were earlier supportive of the stance to some extent but over the time, they have been frustrated with the rigidity and look at the raising of the rates with dismay because of it has been largely ineffective in tackling inflation.

Most economists agree that the government has little choice and understand that the government is not supportive as it has been unable to address pressure points, such as supply bottlenecks in food.

The RBI is expecting the annual inflation to fall to 7 percent by March and assures analysts that further rate hikes will not be made if the inflation moderates as per estimations the central bank.