vIndianz.com (22 Dec, 2009) — Food prices, that are at present ruling at 10-year high, will begin slackening from next month, Planning Commission Deputy Chairman Montek Singh Ahluwalia said today.
The circumstances suggests dysfunction in distribution as retail prices have shot much over wholesale prices and import cannot be done without subsidy as worldwide prices are higher, Ahluwalia said.
“It’s a multifaceted condition and cannot be corrected with monetary policies … prices built up is on speculation post drought. Stocks of cereals are sufficient and prices can be moderated and it will be from January,” he said.
He said the rise in food prices was an immense subject of worry. “There were some increased expectations although for some products like vegetables the increase is extreme.”
Food inflation climbed to a 10-year high of close to 20 per cent throughout the first week of December, driven principally by higher prices of potato, other vegetables and pulses.
Prime Minister Economic Advisory Council Chairman C Rangarajan had said that the Reserve Bank could decrease money supply and increase interest rate to tame the increasing prices of food articles.
Further Reading- Inflation Jumps in Europe – New York Times
- India’s food inflation at 11.49% y/y on Feb 12: Govt – Economic Times
- Canada January Consumer Price Index Report (Text) – Bloomberg
- Treasury Yield Approaches Four-Week High on Rate Expectations – San Francisco Chronicle
- US Living Costs Climb on Food, Fuel as Confidence Gains With Job Growth – Bloomberg
- Freddie Mac: Inflation pushes mortgage rates higher – Bizjournals.com
- Gold, silver rise on Greece’s debt concerns – The Associated Press
- Food prices ‘will double by 2030′ – BBC News
- SKorea lifts 2011 inflation outlook to 3.9 percent – Forbes
- UK inflation rate rises to 4.4% in February – BBC News
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