Food Inflation Pace Tad Up, Rate Increase Unlikely
Author: Abhrajit Gangopadhyay</br></br>NEW DELHI -- India's food inflation rate turned up a tad in the week ended Nov. 27, but stayed below double digits, easing immediate pressure on the central bank to tighten monetary policy further though rising global commodity prices are a concern.</br></br>The food inflation rate, based on the wholesale price index, rose 8.69% from a year earlier, compared with 8.60% in the week through Nov. 20 as egg, meat, fish and onion became costlier, according to data issued Thursday by the Ministry of Commerce and Industry.</br></br>Food inflation is the primary culprit driving up overall prices in Asia's third-largest economy, but as summer-sown crops enter the market, boosting staple supplies, the number is showing signs of easing. Last week, the food price inflation eased to the single digit for the first time since May 2009.</br></br>However, that doesn't offer much peace to the central bank that is cautiously watching rising global commodity prices, which could be the next trigger to drive India's inflation.