inflation

Food inflation rose for the third week in a row to 12.13 per cent on the back of rising cost of vegetables. The latest inflation figure (for the week ended December 11) has jumped into double digits. Inflation for the week ended December 4 stood at 9.46 per cent.

Prices of vegetables, especially onions, have hit the roof. Onion prices have risen up to Rs. 70-85 per kg in retail markets across the country from just Rs. 35-40 a few days ago. 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, a government data shows.

While fruits and milk became 20.15 per cent and 17.83 per cent more expensive year-on-year, vegetables became 15.54 per cent dearer.

On top of that, leading oil marketing companies (OMCs) have hiked petrol price which has led to higher inflation. The government has held back a rise in diesel prices on inflationary concerns.

Inflation for primarily articles shot up to 15.35 per cent for the week from 13.25 per cent. The index for non-food articles group rose by 1.2 per cent.

The sudden jump in food inflation could prompt the Reserve Bank to hike key rates in its policy review meeting next month.

RBI deputy governor Subir Gokarn on Wednesday hinted that more tightening monetary measures were likely to be taken by the apex bank at its next policy review, as headline inflation is not easing as fast as the apex bank would like and upside risks still remain high.

"Inflation is not easing as we would like it to be... Upside risks to inflation are still high," he had said.

Overall inflation for November was at 7.48 per cent, down from 8.58 per cent in the previous month.