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Food inflation surges on dearer vegetables
29 December 2010: Food inflation surged back into double-digit territory at 12.13 per cent for the week ended 24 December 2010 as the prices of vegetables, particularly onions, rose for the third consecutive week.
Food inflation registered a sharp increase during the week under review from 9.46 per cent in the previous week to enter double-digits for the first time since November 13, when it stood at 10.15 per cent.
On an annual basis, onions became costlier by 33.48 per cent, whereas on a week-on-week basis, the increase was 4.56 per cent, according to Government data released.
While fruits and milk became 20.15 per cent and 17.83 per cent, respectively more expensive year-on-year, vegetables became 15.54 per cent dearer.
The sudden jump in food inflation could prompt the Reserve Bank to hike the key rates in its policy review meeting next month.
Overall inflation for November was at 7.48 per cent, down from 8.58 per cent in the previous month.
Source: Hindu Business Line