India's Food Inflation eases to 9.32%

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India's Food Inflation eases to 9.32%
India's food inflation, as measured by Wholesale price index moderated marginally to 9.32% for the week ended October 1 on account of moderation in the prices of onions, government data on Thursday showed.

Food Inflation for the previous week stood at 9.41%.

The primary articles which contribute 20.12% in overall inflation came down a bit at 10.60% during the week under review, compared to 10.84% in the previous week.

The fuel price index rose to 15.10% during the week as against 14.69% for the previous week.

The price of Cereals, Rice and Pulses became costlier by 5.41%, 5.86% and 6.87%, respectively.

The price of vegetables and potato rose by 13.01% and 3.79%, respectively.

The price of milk stood same at 10.35%.

However, onions and wheat saw some relief. The price of onions declined by 10.51% and wheat by 0.24%.

The Reserve Bank of India till now followed tough stance against inflation and raised key policy rates by dozen times. However, the central bank has hinted that it may pause key policy rates if inflation is within its comfort zone.

"Inflation is hurting poor people, We need to tame inflation before bringing down rates" said RBIgovernor D Subbarao.

Inflation in India, a key concern has remained at 9% almost for more than a year now.
The RBI will meet on October 25, 2011 to review monetary policy.

Read more about: inflation, rbi, interest rate
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