Food inflation in India rises to 10.6%

The rate of food inflation in India has once again reached into double digits. It stood at 10.60 percent for the week ending October 8, up from 9.32 percent in the previous week, said official figures released by the country's Commerce Ministry.This is the second time when the rate of food inflation has reached double-digits in the country in one-and-a-half months. Food inflation had previously crossed the double-digit mark in the week ended August 20.Food inflation has been giving a tough time for the government of the day. Yesterday, the country's Finance Minister Pranab Mukherjee had exuded confidence that inflation will moderate to around seven percent by March, 2012.The increase in food inflation is mainly attributed to rise in prices of vegetables, fruits, milk and protein-based items. The rate of price rise of food items stood at 15.72 percent in the corresponding week of the last year.As for official figures, compared to last year, vegetables became 17.59 percent more expensive during the said, fruits grew dearer by 12.39 percent, milk by 10.80 percent and eggs, meat and fish by 14.10 percent. Likewise, pulses also became dearer by 7.42 percent and cereal prices were up 4.73 percent, as compared to last year.Meanwhile, according to a Press Trust of India (PTI) report, the upsurge in food prices is likely to exert further pressure on the government and the country's central bank - "Reserve Bank of India "(RBI) to tackle the situation expeditiously. The RBI has already hiked interest rates 12 times, by a total of 350 basis points, since March, 2010, to tame demand and curb inflation, it added. The RBI is scheduled to announce its second quarterly review of the monetary policy on October 25, and it is believed that another rate hike is expected, despite the slowdown in industrial growth.