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Indian Food inflation rises to 9.13%

Thursday, September 29, 2011

India's food price index rose 9.13% and the fuel price index climbed 14.69 percent in the year to Sept. 17, government data on Thursday showed......


India's food price index rose 9.13% and the fuel price index climbed 14.69 percent in the year to Sept. 17, government data on Thursday showed.

In the previous week, annual food and fuel inflation stood at 8.84 percent and 13.96%, respectively.

The primary articles index was up 11.43%, compared with an annual rise of 12.17% a week earlier.

India's central bank has raised interest rates a dozen times in the past 18 months, but headline inflation remains at more than twice the bank's comfort level, confounding expectations that it was coming to the end of its tightening cycle.

The Reserve Bank of India lifted its policy lending rate, the repo rate , by 25 basis points to 8.25% this month, in line with expectations, in a campaign that has done more to slow growth than contain near double-digit inflation.

India's inflation in August accelerated to 9.78%, its highest in more than a year, from 9.22% recorded for July.

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