India’s food inflation at 8.84%

Friday, 23 September 2011 02:51 - - {{hitsCtrl.values.hits}}

NEW DELHI (Reuters): India’s food price index rose 8.84 percent and the fuel price index climbed 13.96 percent in the year to Sept. 10, government data on Thursday showed.

In the previous week, annual food and fuel inflation stood at 9.47 percent and 13.01 percent, respectively.

The primary articles index was up 12.17 percent, compared with an annual rise of 13.04 percent a week earlier.

India’s central bank has raised interest rates 12 times in18 months but headline inflation remains at more than twice the bank’s comfort level, confounding expectations that it was coming to the end of its tightening cycle.

The Reserve Bank of India lifted its policy lending rate, the repo rate , by 25 basis points to 8.25 percent last Friday, in line with expectations, in a campaign that has done more to slow growth than contain near double-digit inflation.

India’s inflation in August accelerated to 9.78 percent to its highest in more than a year, from 9.22 percent recorded for July.