India’s food inflation again crossed the 9% level and jumped to 9.13% for the week ended September 17 because of high prices of potato and pulses. Onion prices dropped a bit for the same week. Food inflation was 8.84% in the previous week. India’s main inflation touched the yearly high of 9.78% in August as well.
Food inflation near double digit is a great concern for RBI and the Indian Government as Government has been struggling to tame continuous increasing inflation since last one and half years. In spite of continuous rate hikes by RBI, Food inflation is still staying at much higher than RBI’s comfort level and showing no sign of cooling down. Now the better than expected farm production due to above normal monsoon is the only hope to tame inflation in the coming months.