Search: Look for:   Last 1 Month   Last 6 Months   All time

Rising food inflation influencing overall inflation: RBI

New Delhi, Mon, 17 Jun 2013 NI Wire

Rising price of foodstuffs like cereals and vegetables is one of the major reason of pressure on India's overall inflation rate, the Reserve Bank of India (RBI) said Monday.

Higher food inflation, specifically in respect of cereals and vegetables, "sustained upside pressures on overall inflation," the RBI said in its mid-quarter review of the monetary policy.

"Headline WPI (wholesale price index) inflation eased for three months in succession with the May reading at 4.7 per cent, down from an average of 7.4 per cent in 2012-13. All constituent categories, barring food, have moderated. In the fuel category, coal and mineral oil prices declined, partly offsetting the upward revision in administered prices of electricity. Non-food manufactured products inflation too ebbed, driven by metal prices which fell for the eighth successive month in response to softening of global prices", it said.

"Still elevated food inflation, particularly in respect of cereals and vegetables, sustained upside pressures on overall inflation. Retail inflation, as measured by the new combined (rural and urban) CPI (consumer price index), edged down from an average of 10.2 per cent last fiscal year to 9.3 per cent in May."

And as food inflation increases, the inflation position will be influenced by efforts to break this, it said.

"On the inflation front, easing commodity prices at the global level and weaker pricing power of corporates at the domestic level are having a softening influence. Given that food inflation remains high, the inflation outlook will be influenced by concerted efforts to break food inflation persistence."

"The inflation outlook going forward will be determined by suppressed inflation being released through revisions in administered prices, including the minimum support prices (MSP) as well as the recent depreciation of the rupee."

-With inputs from IANS


LATEST IMAGES
Manohar Lal being presented with a memento
Manoj Tiwari BJP Relief meets the family members of late Ankit Sharma
Haryana CM Manohar Lal congratulate former Deputy PM Lal Krishna Advani on his 92nd birthday
King of Bhutan, the Bhutan Queen and Crown Prince meeting the PM Modi
PM Narendra Modi welcomes the King of Bhutan
Post comments:
Your Name (*) :
Your Email :
Your Phone :
Your Comment (*):
  Reload Image
 
 

Comments:


 

OTHER TOP STORIES


Excellent Hair Fall Treatment
Careers | Privacy Policy | Feedback | About Us | Contact Us | | Latest News
Copyright © 2015 NEWS TRACK India All rights reserved.