Thursday, 24 March 2011
India's food inflation snapped a three-week
Inflation pressures in India still persist, the deputy governor of the Reserve Bank of India, Subir Gokarn, told television channel ET Now in an interview on Thursday.
Food inflation snapped a three-week easing trend in mid-March and fuel inflation remained at elevated levels, keeping pressure on the central bank to rein in broader inflation. The food price index rose an annual 10.05% in the week to March 12, higher than a 9.42% rise in the previous week as prices of potatoes and vegetables rose, data released on Thursday showed.
High food prices kept headline inflation up for much of the past year. But now rising energy prices on unrest in the Middle East are a bigger challenge to inflation management as costlier fuel runs the risk of stoking overall inflation.
"Fuel inflation has remained steady as not much of pass through of high global crude prices is happening," said NR Bhanumurthy, an economist at Delhi-based think-tank National Institute of Public Finance and Policy.
India's food inflation snapped a three-week easing trend in mid-March and fuel inflation remained at elevated levels, data on Thursday showed, keeping pressure on the central bank to rein in broader inflation.
Food inflation snapped a three-week easing trend in mid-March and fuel inflation remained at elevated levels, keeping pressure on the central bank to rein in broader inflation. The food price index rose an annual 10.05% in the week to March 12, higher than a 9.42% rise in the previous week as prices of potatoes and vegetables rose, data released on Thursday showed.
The fuel price index climbed 12.79% in the same week, the same level as in the previous week. Bonds fell on the data.
High food prices kept headline inflation up for much of the past year. But now rising energy prices on unrest in the Middle East are a bigger challenge to inflation management as costlier fuel runs the risk of stoking overall inflation.
"Fuel inflation has remained steady as not much of pass through of high global crude prices is happening," said NR Bhanumurthy, an economist at Delhi-based think-tank National Institute of Public Finance and Policy.
India's food inflation snapped a three-week easing trend in mid-March and fuel inflation remained at elevated levels, data on Thursday showed, keeping pressure on the central bank to rein in broader inflation.
