India's credit rating at risk from food inflation: Moody's

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High food inflation in India, which drove the Consumer Price Index (CPI) to nearly 11 per cent in February, is posing risks for the country's sovereign ratings via weakening macroeconomic indicators, said rating agency Moody's on Monday.

Retail inflation moved up for the fifth consecutive month to 10.91 per cent in February on account of higher prices of vegetables, edible oil, cereals and protein-based items.

Another rating agency CARE had recently said that CPI inflation is expected to remain at higher levels following sustained pressure from food side.

Besides, Moody's is the only rating agency which has maintained a "stable" outlook on India while Fitch and S&P downgraded it to "negative" last year.

Read more about: moodys
Story first published: Monday, March 18, 2013, 13:30 [IST]
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