Food inflation rises to 17.47% on dearer onions

New Delhi, Dec 3 (PTI) Food inflation soared to 17.47 per
cent in the third week of November, driven by expensive onions
and other essentials but potatoes have turned cheaper.

On a weekly basis, onions became dearer by over 12 per
cent, while it surged by 30.89 per cent on yearly basis.
Pulses rose over 37 per cent, while rice wheat, fruits,
milk turned expensive by over 10 per cent on yearly basis.
However, potato prices, which have been rising, declined
to 94.17 per cent on yearly basis. They rose 100 per cent a
week ago.
Food inflation stood at 15.58 per cent a week ago.
The spurt in food inflation have prompted many to call
for a tigher monetary stance by the Reserve Bank. "Food prices
must be controlled, otherwise they have a tendency to lead to
manufacturing inflation...This will require monetary action by
RBI, especially (money) supply management," Indian PM's
economic panel Chairman C Rangarajan said.
RBI itself was in agreement that it would have to
reassess the accommodative policy stance going forward, since
the economy is on a rebound and prices were rising.
RBI Deputy Governor Usha Thorat said, "Clearly now going
forward, it (accommodative policy) will have be to reassessed.
WPI inflation...now we are looking at 6-6.5 per cent till
March with upward bias. CPI inflation is still elevated."
While monetary policy does not have a direct bearing on
bringing down prices of food items, demand for tightening
money supply is directed towards preventing food inflation
from spreading to manufactured items. PTI BSP
RDM


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