Food inflation jumps 17.5%, onions, rice turn dearer

Inflation in the price of food articles touched a high of 17.47 per cent in the week ending November 21 according to official figures released on Thursday.

Inflation in the price of food articles touched a high of 17.47 per cent in the week ending November 21 according to official figures released on Thursday.

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Onions were dearer by 31 per cent over the price in the same week last year, while pulses rose over 37 per cent. Wheat and rice turned expensive by over 10 per cent.

The government will have to tread carefully to tackle the rise, without doing damage to the economic recovery seen lately. “Food prices must be controlled… This will require monetary action by the Reserve Bank, especially (money) supply management,” said C. Rangarajan, chairman of the prime minister’s economic advisory council.

All eyes are now on the RBI to see what measures it will announce to suck liquidity of out the system.