Food inflation increases to 15.57

India-s food inflation was increased to 15.57% for the week ended January 15 because of higher vegetable prices. The onion price is still continuing its upward movement which was up by around 110% compared to same week last year and pulling up the food inflation significantly. For the previous week, the inflation was 15.52%.

This increase in inflation will put more pressure on the Government which is still struggling to tame inflation. RBI has just increased the policy rates (Repo and Reverse Repo) to tame inflation, but its job is getting harder with industrial production dropping to 2 year low of 2.7% in November. Now it has become a challenge for Government to tame inflation without hurting the economic recovery process.