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India faces an inflation crisis
Food inflation in India has risen to a staggering 10.86%, following hikes in the prices of fuel and other primary articles. The Reserve Bank of India may now increase interest rates in an attempt to bring inflation under control.

 New Delhi: Food inflation in India rose to 10.86 per cent for the week ended August 21 from 10.05 per cent a week earlier, snapping a two-week decline, official data released on Friday showed.The inflation for the fuel and primary articles groups also inched higher, according to the data released by the Commerce Ministry.

The fuel prices moved up to 12.71 per cent, after staying steady at 12.57 for over two weeks, reports IANS. The primary articles index rose at a quicker pace of 15.19 per cent, compared to the previous week's increase of 14.75 per cent. According to recently released data, wholesale price inflation, the measure for overall increase in prices, was at 9.97 per cent in July. The Reserve Bank of India, which is slated to a review of its monetary policy this month, may hike key interest rates again to contain high inflation.

 

Source: igovernment