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Food price index up 19.95% on December 5: Government

Published: Thursday, Dec 17, 2009, 13:57 IST
Place: New Delhi | Agency: Reuters

Food price index rose 19.95% in the 12 months to December 5, while the fuel index was up 3.95%, the government said on Thursday.

The driest spell in 37 years and floods in some parts of the country have trimmed farm output and pushed up food prices.

C Rangarajan, chairman of the prime minister's Economic Advisory Council, was quoted on Wednesday as saying that the Reserve Bank of India could tighten monetary policy in December as inflation could rise to near 7% by March.

The government is also under pressure from opposition benches in parliament to take immediate steps to contain inflation as the wholesale price index has also gone up by 4.78% in November compared to 1.34% in October.

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