Food inflation rose to 10.6% for the week ending October 9 from 9.3% reported in the previous week, entering double-digit territory for the first time after August 20. According to commerce ministry data, the week witnessed a broad rise in prices of vegetables, fruit and protein-based items such as egg, meat and fish.
Chairman of Prime Minister?s Economic Advisory Council C Rangarajan expressed his concern at the steady rise in food, inflation adding the rate would moderate in the coming months as kharif harvest boosts grain supplies.
?Even if in this particular week it (inflation) has risen, it will come down. I believe monsoons have an effect on the availability of grains which you will see in the months ahead,? he said.
On an annual basis, prices of vegetables rose 17.59%, fruit 12.39%, milk 10.80%, pulses 7.42%, cereals 4.73% and eggs, meat and fish 14.10%. Among food items which became cheaper were onion (11.27%) and wheat (0.18%).
Export restrictions in the form of high minimum prices and a bumper kharif production have combined to increase domestic availability of onion, pulling down its price.
Assocham secretary general DS Rawat said in a statement: ?Government intervention in agriculture sector needs a complete overhaul with a fresh perspective at the highest level to tackle supply side constraints.?
The Reserve Bank of India has increased policy rates 12 times since March 2010 by a total of 350 basis points to curb demand and tame inflation.
The RBI is scheduled to announce its second quarterly review of the monetary policy on October 25 and experts have said that another rate hike is expected, despite the slowdown in industrial growth.