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Food Inflation Dips Marginally But Still High

MP Rana, Thursday 22nd July 2010


The ever rising woes for the common man due to the increasing inflation seems to have no end as rates in food inflation remained at an high of 12.47 per cent as on July 10,2010. Last week also the inflation rate was about 12.81 per cent.


The government had earlier anticipated that due to the good monsoon there might be some respite regarding the inflation rates and also had voiced that the overall inflation would be coming down to 5-6 per cent by December this year. But with prices of milk, fruits and other food items especially pulses increasing, the sub index of these articles saw a rise of 0.6 per cent this week thus keeping the point to point inflation in double digits.


The inflation rates of fuel prices also saw a rise of 14.27 per cent and due to which it is expected that the RBI might well announce a hike of 25 bps in the key policy rates. RBI had most recently increased the policy rates earlier this month on July 2nd. The government is hoping to get a good monsoon and healthy summer harvest as it is the only way of cooling down the inflation rate.

 
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