Tuesday, November 12, 2013

Veggie prices push inflation to 10.09%

Prices of almost all everyday products and services — from food to footwear and movie tickets to medicines — saw a sharp rise in October, pushing retail inflation to 10.09%, the highest in seven months.

Costlier onions and tomatoes saw retail inflation — a measure of prices that are asked of you at a shop — cross the double-digit mark for the first time in seven months, indicating Indians are paying some of the highest prices in recent times for virtually everything.

Factory output, on the other hand, grew 2% in September, from 0.4% in August, but experts cautioned that it may be too early to conclude this as the beginning of industrial recovery.

Rising prices and sliding growth remain key worries for the government strung in a by a heavy debt burden.

"CPI (consumer price index) at over 10% is a disturbing sign. Growth in CPI is due to a rise in food inflation," C Rangarajan, chairman of Prime Minister's economic advisory council, said.

Read More: Your home budget is getting squeezed

High prices, as shown by data on Tuesday, also signal India's inability to control household inflation, partly stoked by a falling rupee.

It could get worse with the rupee falling to a two-month low to Rs. 63.17 to a dollar on Tuesday amid fears that the US will begin unwinding its easy-money policy that will prompt foreign funds to move dollars away from emerging markets such as India.
News From: http://www.7StarNews.com

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