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India's food inflation rises to 9.13 pct

English.news.cn   2011-09-29 15:18:53 FeedbackPrintRSS

NEW DELHI, Sept. 29 (Xinhua) -- India's food inflation rose to 9.13 percent for the week ending Sept. 17 as compared to 8.84 percent in the previous week, on a year-to-year basis, reported local media Thursday.

Indian Finance Minister Pranab Mukherjee said after the official data were released that high inflation is a grave concern of the government.

The primary articles index, which has a 20.12 percent weight in the wholesale price index, rose by 11.43 in the week under review as compared to 12.17 percent in the previous week, according to data released by the commerce and industry ministry.

The rise in the index of fuel and power accelerated to 14.69 percent during the week under review as compared to 13.96 percent in the previous week.

The index for non-food articles rose at a much slower rate of 12.89 percent during the week ending Sept. 10 as compared to 17.42 percent in the previous week.

With food inflation again rising to over 9 percent, after a slip last week, the government will have to look at easing supply side bottlenecks as the Reserve Bank of India (RBI) will not be able to hike rates significantly after it tightened monetary policy earlier this month, said the Indo-Asian News Service.

The RBI, India's central bank, in the 12th such exercise since January 2010 to control inflation had hiked key rates by 25 basis points.

Despite the aggressive monetary tightening by the central bank, inflation has remained high, with the inflation rate for August standing at 9.78 percent.

The RBI has recently warned that high inflation could eat up the fruits from India's 8 percent yearly GDP growth.

Editor: Yamei Wang
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