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Food Inflation- A major source of anxiety


Posted 12 Nov 2011 by jaijai

The Central bank for the past 20 months ahs increased the short-range lending rates to almost 13 times. The hike is regarded as an initiative to grasp the headline inflations. Mr.Subir Gokran, the Deputy Governor of Reserve Bank of India commenting on the prevailing market trend conveyed his concern, over the high inflation, and food and termed it as a great issue of concern.

The Deputy Governor of the Reserve Bank of India, further added that they expect the inflation to begin approaching down from the month of December, because of the drop in demand and the foundation effect. By this fiscal end, the inflation on headline must be around seven percent.

A figure investigation has revealed incredible hike around 26.05% for the broadly consumed vegetables, and 13.27 % for pulses and 11.70%for the fruits. Apart from these food products, other edible stuffs such as egg, milk, fish and meat also turn expensive by 11.79% and 12.74%.

Furthermore the market experts have predicted that the tomato price will get increased. This is because of the unseasonal rainfall in some portions of the country, including the Himachal Pradesh, and other states have damaged the growth of tomato crops.

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