New Delhi, Nov. 17: In a momentary relief to ruling UPA alliance India's food inflation eased marginally to 10.63% in the week ended on November 5, 2011 from 11.81% in the previous week, the data released by the Ministry of Commerce and Industry showed Thursday. In the corresponding week last fiscal food inflation was at 11.41%.
Food inflation in the week eased due to fall in the prices of fish-inland by 5%, masur 4%, poultry chicken 3%, fruits & vegetables 2% and ragi, urad, maize, gram, wheat and condiments & spices by 1% each.
Reserve Bank of India (RBI), the central bank of country, in a move to control inflation hiked key policy rates 13-times by 375 basis points since March 2010 as headline inflation remained above the comfort zone of 5-6% in the period.
Primary article inflation in the week ended on November 5 also eased to 10.31% on year as compared to corresponding week last fiscal when it was at 15.37%. In the previous week it was at 11.43%.
Inflation in non-food category rose continued its downward trend and in the reporting week it stood at 5.33% on year as compared to 24.16% in the corresponding week last fiscal. In the previous week it was at 6.41%. Non-food inflation eased due to decline in prices of logs & timber by 17%, mesta 10%, flowers 6%, raw rubber and rape & mustard seed 3% each and raw jute 2%.
One of the biggest politically sensitive category, fuel and power inflation moved up to 15.49% in the week under consideration as compared to 10.57% in the corresponding week last fiscal. In the previous week it was at 14.50%.
Reserve Bank of India is struggling to keep growth-inflation dynamics in balance as 13 consecutive policy rate hike is impacting the industrial growth of country. Any further rate hike will have very negative impact on business sentiment.
However, as five states are poll bound government is definitely going to continue to focus on inflation control and RBI will have to go by that sentiment and hike rate further if inflation does not show sign of easing in coming weeks.
New Delhi, Nov. 17: In a momentary relief to ruling UPA alliance India's food inflation eased marginally to 10.63% in the week ended on November 5, 2011 from 11.81% in the previous week, the data released by the Ministry of Commerce and Industry showed Thursday. In the corresponding week last fiscal food inflation was at 11.41%.
Food inflation in the week eased due to fall in the prices of fish-inland by 5%, masur 4%, poultry chicken 3%, fruits & vegetables 2% and ragi, urad, maize, gram, wheat and condiments & spices by 1% each.
Reserve Bank of India (RBI), the central bank of country, in a move to control inflation hiked key policy rates 13-times by 375 basis points since March 2010 as headline inflation remained above the comfort zone of 5-6% in the period.
Primary article inflation in the week ended on November 5 also eased to 10.31% on year as compared to corresponding week last fiscal when it was at 15.37%. In the previous week it was at 11.43%.
Inflation in non-food category rose continued its downward trend and in the reporting week it stood at 5.33% on year as compared to 24.16% in the corresponding week last fiscal. In the previous week it was at 6.41%. Non-food inflation eased due to decline in prices of logs & timber by 17%, mesta 10%, flowers 6%, raw rubber and rape & mustard seed 3% each and raw jute 2%.
One of the biggest politically sensitive category, fuel and power inflation moved up to 15.49% in the week under consideration as compared to 10.57% in the corresponding week last fiscal. In the previous week it was at 14.50%.
Reserve Bank of India is struggling to keep growth-inflation dynamics in balance as 13 consecutive policy rate hike is impacting the industrial growth of country. Any further rate hike will have very negative impact on business sentiment.
However, as five states are poll bound government is definitely going to continue to focus on inflation control and RBI will have to go by that sentiment and hike rate further if inflation does not show sign of easing in coming weeks.
