Due to high food prices Inflation climbs to 7.31 per cent in December
merisarkar news service
New Delhi, January 14, 2010
Sugar price have touched Rs. 50 a kg
Inflation measured by wholesale rates climbed to more than a year's high. In December it reached to 7.31 pc namely on account of high prices of sugar, pulses, potato.
The December data beat RBI's forecast that inflation would reach 6.5 percent-level only by this fiscal end.
The sharp increase in the food prices could be measured from the fact that prices of processed food items rose at the rate of 26.40 percent in December, and non-processed food items turned expensive by 19.17 percent.
Inflation was last above this level in November 2008 (8 percent). In November 2009, inflation was 4.78 percent.
Sugar in the retail market is selling at nearly Rs 50 a kg. Potato prices too have more than doubled, while pulses became costlier by over 40 percent from year-ago level. Overall vegetable and cereal prices were up nearly 40 and 13 percent.
In order to rein in the recent surge in sugar prices the government on Wednesday had announced duty free import of white sugar till the end of this year.
Food and Agriculture minister Sharad Pawar said that the government could also release 2-3 million wheat in the open market in the next two three months.
