New Delhi, Jan 27 (IANS) India’s annual food inflation inched up to 15.57 percent for the week ended Jan 15, because of a sharp rise in fuel prices and with vegetables and other essential food items continuing to cost dear, as per official data released Thursday.
Food inflation for the previous week was 15.52 percent. The data released reflected the latest petrol price hike of Rs.2.50 per litre. Fuel price rise has a cascading effect on inflation.
The fresh data comes a couple of weeks after the government announced several measure to contain food prices. The Reserve Bank of India too had pitched in raising key interest rates Tuesday.
Much to the discomfort of industry and people, the annual inflation for primary articles rose further to 17.216 percent, compared to 17.03 percent in the previous week, according to data released by the commerce and industry ministry.
The annual inflation for fuels rose to a whopping 16.4 percent, against 11.53 percent in the previous week.
Non-food articles were at 22.48 percent for the week ended Jan 15, marginally lower from the 23 percent-levels a week ago.
The Reserve Bank of India Tuesday hiked its repurchase or repo rate to 6.5 percent from 6.25 percent and reverse repo rate to 5.5 percent from 5.25 percent in a bid to tame prices that have resulted in annual food inflation soaring to double digits.
The central bank also revised its current fiscal year-end projections for inflation, raising it to 7 percent from the earlier 5.5 percent,
The government has already outlined a series of anti-inflation steps last week, including regulation of exports and imports, sale of onions through government agencies using state-run firms to source pulses and stringent action against hoarders.
The wholesale price index had risen 8.43 percent in December from a year earlier.
