Food inflation dips to 8.84%

Food inflation dips to 8.84%

New Delhi: India’s food price index rose 8.84% and the fuel price index climbed 13.96% in the year to 10 Sept., government data on Thursday showed.

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

The primary articles index was up 12.17%, compared with an annual rise of

13.04% a week earlier.

The Reserve Bank of India (RBI) has raised interest rates 12 times in 18 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 central bank lifted its policy lending rate, the repo rate, by 25 basis points to 8.25% 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% to its highest in more than a year, from 9.22% recorded for July.