Indian inflation rebounds to 8.43% in Dec.
2011-01-14 17:42:24
Indian headline inflation rebounded to 8.43 percent in December from 7.48 percent in the previous month due to pricier vegetables and fruits, said a statement by the Ministry of Commerce and Industry on Friday.
The reversal of food prices in last few weeks has forced Indian central government to announce a series of measures to combat inflation on Jan. 14 including subsidized sale of onions, continued ban on export of key primacy articles, attack on hoarding and cartels as well as introduction of coordinated bodies.
The prices of primary articles advanced 3.5 percent month on month with prices of food articles and non-food articles up 3.7 percent and 2.3 percent from the previous month, respectively.
Among the primary food articles, onion prices shot up 45.82 percent from the same period of last year with prices of vegetables, fruits, milks and egg, meat and fish up around 20 percent.
Still, the prices of potato and wheat dropped 26.57 percent and 5.09 percent, respectively.
The prices of manufactured products only experienced near 0.4 percent growth in December from the previous month with year-on- year inflation at 4.46 percent.
Sugar, edible oil, cotton textile and transport equipment and parts got costlier with prices increasing 2.07 percent, 1.41 percent, 2.01 percent and 1.26 percent from November.
The price index with fuel and power sector rose 1 percent from previous month due to price hikes of light diesel oil, aviation turbine oil, naphtha, bitumen and petrol.
Additionally, the inflation in October of 2010 was revised upwardly from 8.58 percent to 9.12 percent.
The current level of food inflation in India is not acceptable, said Indian Finance Minister Pranab Mukherjee on Friday, commenting on the latest figure of inflation.
Indian central bank is widely anticipated to raise key interest rates while announcing its monetary review report on Jan. 25, though monetary policies are believed to have little impact on prices now.
Indian central bank has hiked interest rates six time in 2010 and is expected to adjust up interest rates by another 0.75 percent to 1 percent in 2011.
Food price inflation has become the main headache for Indian government recently due to official projections on inflation easing failing to materialize.