Food prices continue to spiral in India
An increase of 12.21% within just one week compared to last year and 0.8% over the previous week. The higher prices reinforce inflation, which threatens to overcome the country's economic growth. On 25 October, the central bank raised its lending rate for the 13th time since March 2010.
New Delhi (AsiaNews) - The price of food continues to grow in India. Despite the tight credit policy pursued by the Central Reserve Bank of India (RBI), in fact, the wholesale price index of food marks in the week October 15 to 22, saw an increase of 12.21% compared to last year, even more than the 11.43% recorded in the previous week. The figure reported is the highest recorded since January, when the index marked an increase of 12.9%.
The increase, which a weekly basis touches on 0.8%, is attributed to the high prices of high-protein foods - meat, fish, eggs - the difficulties in supplies and a poor distribution system. The lack of infrastructure, often makes it difficult to transport food and it is estimated that 40% of the fruits and vegetables rot before reaching the market stalls.
High food prices are of concern because they fuel inflation which for the past 10 months is indicated at 9%, an alarming rate because it exceeds the economic growth, scheduled for 2011 at around 8%. The RBI is reacting by imposing increased currency rates. An increase of 0.25% announced on October 25 was the 13th since March 2010.
The increase, which a weekly basis touches on 0.8%, is attributed to the high prices of high-protein foods - meat, fish, eggs - the difficulties in supplies and a poor distribution system. The lack of infrastructure, often makes it difficult to transport food and it is estimated that 40% of the fruits and vegetables rot before reaching the market stalls.
High food prices are of concern because they fuel inflation which for the past 10 months is indicated at 9%, an alarming rate because it exceeds the economic growth, scheduled for 2011 at around 8%. The RBI is reacting by imposing increased currency rates. An increase of 0.25% announced on October 25 was the 13th since March 2010.
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