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Thursday, May 5, 2011

Food Inflation Falls To 8.53%


India's food price index rose 8.53% and the fuel price index climbed 13.53% in the year to April 23, government data on Thursday showed.

In the previous week, annual food and fuel inflation stood at 8.76% and 13.53%, respectively.

The primary articles price index was up 12.11%, compared with an annual rise of 12.08% a week earlier.

The Reserve Bank of India raised interest rates by a bigger-than-expected 50 basis points on Tuesday, its ninth rate hike since March 2010, in a bid to moderate stubbornly high inflation.

The wholesale price index-based inflation, the most widely watched gauge of prices in India, rose 8.98% in March from a year earlier, higher than February's 8.31% rise.

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