News Tonight

During the past 20 months the central bank has increased short-term lending rates around 13 times, the hike can be considered as an effort to hold the headline inflation. While commenting on the existing market trend, the Deputy Governor of Reserve Bank of India, Subir Gokarn, has also expressed anxiety over the high food inflation and marked it as a major concern.

"Over all we expect inflation to start coming down from December due to fall in demand and the base effect. By the end of this fiscal, headline inflation should be around 7%”, Gokarn added further.

An analysis of figures has exposed unbelievable hike, around 26.05%, in the prices of widely consumed vegetables whereas 13.27%, 11.70% for pulses and fruits respectively. Besides these food items, other edibles such as eggs, meat & fish, milk are also turned costlier by 11.79% and 12.74%.

Complete primary articles category was observed to reflect inflation rate of 11.43%, a significant fluctuation as compared to previous week figure of 12.08%. Marked experts have notified a 20% burden for the Wholesale Price Index. On the other hand, inflation for other commodities such as oilseeds and minerals was observed close to 6.41%, during the week.

In addition, market experts have anticipated that tomato is likely to experience an accelerated price; having an influence from the unseasonal rainfall in some parts of the country including Himachal Pradesh and cited that rain had ruined the tomato crops.

Meanwhile, a recent report that was released on Friday has exposed that disruption, particularly during the festival season has badly affected the vegetables. Consequently, the tomatoes were observed 101.03% dearer as compared to previous year figures and touched the price-inflation of 88.06%, during the previous week. Simultaneously, the vegetable prices were observed to experience a big down fall of 5.35%.