Food inflation rises 7.58% at 9 July

Food inflation rises 7.58% at 9 July

New Delhi: India’s food price index rose 7.58% and the fuel price index climbed 11.89% in the year to 9 July, government data on Thursday showed.

In the previous week, annual food and fuel inflation stood at 8.31% and 11.89%, respectively.

The primary articles price index was up 11.13%, compared with an annual rise of 11.58% a week earlier.

The Reserve Bank of India ( RBI) is expected to raise its key policy rate by a further 25 basis points next week after inflation accelerated in June and may hike once more by the end of the year, before pausing its long tightening campaign, the latest Reuters poll showed on Wednesday.

The wholesale price inflation quickened in June to an annual 9.44% from 9.06% in May, driven by higher prices of manufactured goods and fuel, even though the economy showed signs of cooling.

The RBI is expected to raise rates for the 11th time since March 2010 at its monetary policy review on 26 July to combat sticky inflation.