The only option is to cool demand. In other words, cut back on spending and aim for slower growth.
Retail inflation measured by the consumer price index has risen sharply across food and non-food constituents, including services, keeping inflation expectations high, the Reserve Bank of India said in its Second Quarter Review of Monetary Policy 2013-14.
Not just onion, retail prices of potato and other vegetables have also shot up in the national capital on Monday as recent winter rainfall has damaged some of the crops. Milk and butter prices have also gone up. Even cooking oil prices, especially of mustard oil, have increased by Rs 15/kg litre.
The overall market breadth was marginally positive as 1,422 stocks advanced while 1,310 stocks declined.
Singh assured that the government was taking all possible steps to contain food inflation.
Finance Minister Pranab Mukherjee on Friday said surging food and fuel prices amid weak global economic growth are adversely impacting GDP growth of the country.
An opinion poll conducted by India Today to find out who are India's hated politicians has revealed some interesting results. Recent attacks on Indian political leaders have exposed the growing discontent among the masses, who are fed up of rising prices and corruption.
The country is estimated to have harvested a record 235.88 million tonnes (MT) of foodgrains.
RBI may wait for a substantial downtrend and maintain repo at the current level in its third-quarter review.
Food inflation has entered negative territory but consumers have had no respite on cost of living.
Food inflation numbers have moderated every week since early November when it stood at double-digit.
The first task before him is to get used to the idea of working with the Monetary Policy Committee
Continuing decline in food prices, including vegetables, pulled wholesale price inflation to a five year low of 1.77 per cent in October.
The National Stock Exchange's 50-share S&P CNX Nifty closed down 37 points at 4,763.
BSE market breadth was negative with 1,909 stocks declining and 846 stocks advancing from the total 2,868 traded stocks.
In February last year, it was 9.54 per cent.
Retail inflation has eased from double digits in 2013.
In August, wholesale prices rose 3.74 per cent year-on-year.
The Reserve Bank of India, which mainly factors in retail inflation to decide its monetary policy, has been tasked by the government to ensure the rate of price rise remains around 4 per cent.
Fruits, vegetables and eggs continued to witness deflationary trend during January this year, with their prices declining 4.18 per cent, 13.32 per cent and 2.44 per cent, respectively.
The overall breadth was extremely positive as 1,809 stocks advanced while 982 declined.
The finance minister has increased the quantum of rural credit, with particular emphasis on short-term crop loans for small farmers and focussed heavily on improving food storage and processing infrastructure as well as supply chain management.
Alibaba's pervasive economic and social influence in China is seen as a threat to the authority of the Chinese Communist party, notes Shyam Saran.
Spiralling prices of wheat, maize, sugar and oils apart from food items such as vegetables turning costlier, are pushing food inflation higher, according to World Bank.
Inflation, as measured by the Wholesale Price Index, was 7.55 per cent in May. In June last year, it was 9.51 per cent.
When Union Finance Minister Pranab Mukherjee came to the All India Congress Committee headquarters on Tuesday evening to meet the Congress Working Committee members and party office bearers and hear their suggestions on what should be incorporated in the coming budget for the aam admi, he was bombarded with suggestions.
BSE market breadth was negative. Out of 2,842 stocks traded so far, 1,827 shares declined and 887 shares advanced.
The Monetary policy committe comprising 6 members voted 6-0 in the favour of the rate cut.
While foreign direct investment is not allowed in the multi-brand retail, the organised retail stores promoted by the domestic industrial houses have been steadily growing.
Overall food inflation rose to 10.74 per cent in May, from 10.49 per cent in the previous month. Food articles have 14.3 per cent share in the WPI basket.
The government on Friday decided to allocate five million tonnes of additional wheat and rice for distribution through ration shops to BPL families, giving them some relief from high food inflation.
Skymet said the monsoon this year could be 100 per cent of the long period average (LPA) with a model error of plus and minus 5 per cent.
National Stock Exchange index Nifty shot up 50 points to 4,756.45.
The poor performance of capital goods - a bellwether for future growth - has alarmed most analysts
Oil companies on Thursday again hiked petrol prices by Rs 1.80 per litre to offset the fall in rupee that has made imports of crude costlier.
Food inflation is rampant the world over. In Tunisia -- and to some extent in Egypt -- it actually led to the toppling of the government following riots over high food prices. West Asia and North Africa too have seen similar -- and huge -- protests over the hardships people are faced with due to runway inflation.
The RBI said recently that the upsurge in inflation in April was led by food and commodity prices.
This Budget, the finance ministry may consider a proposal for a seed fund that would provide financial support to states willing to sell items other than foodgrain, sugar and kerosene through the public distribution system (PDS). The move, experts believe, will help reigning in food inflation that remains in double digits, despite moderation.
FMCG sector will benefit from measures taken to negate food inflation pressure on common man and also measures to boost disposable income.
© 2026 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances