Food inflation rises to 18.32%
The man on the street already knows about it, but the government has just confirmed it. Food inflation, which measures the pace at which prices of food stuffs is going up, rose to 18.32 per cent for the week ending December 25. The rise is largely due to increase in the prices of onions, milk, meat, fruit and vegetables, which have gone up from 20-80 per cent compared to the last year.
The government, meanwhile, has finally expressed its inability to bring down rising food prices. Finance minister Pranab Mukherjee admitted that the rise in food prices is due to growing demand and increasing incomes. Economists have been pointing out that with increasing incomes, consumers across India are looking for better quality food, pushing up prices. Unless the government acts on increasing supply, prices will stay high.
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Onion prices up as Pak bans export
New Delhi, Jan. 6: Retail prices of onion increased by `5-10 per kg to `65 per kg across the country as supplies reduced following reports of Pakistan banning export of the commodity to India.
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