"Unacceptably high" food prices pushes inflation to 8.43 pc - Oneindia News: "New Delhi, Jan 14 (PTI) Expensive food items pushedoverall inflation to 8.43 per cent in December, but expertssay the rate of price rise will come down now since thecountry has seen the peak of food prices.
Buzz up!
The 0.95 percentage points rise in inflation from 7.48per cent from the previous month is likely to prompt RBI tohike key short-term rates later this month.
However, many doubt the effectiveness of monetary policyto tame high food prices, which Finance Minister PranabMukherjee termed as 'unacceptably high.'
After the Government asked states to remove bottlenecksin supply of food items yesterday, Mukherjee said he wouldagain raise the issue of high inflation with his statecounterparts during the pre-budget interactions, slated forJanuary 19.
The contribution of food inflation to overall inflationcould be gauged from the fact that ''manufactured'' inflation,in fact, came down to 4.46 per cent in December from 4.56 percent in the previous month.
It could also be assessed from the fact that theseare mainly vegetable prices which have already risen duringthe month.
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