Monday, January 3, 2011

Record High Inflation in India

Rising fuel and food prices in India are reviving inflation fears.
During the past year, the nation's food price index rose 12.13 percent.
Basic vegetables are of main concern as consumers complain about being unable to afford certain dietary staples.
The price of onions, for example, has risen by 350%.
Up-scale restaurants have also seen a steady increase in prices these last six months, effecting their profit margins. Although they are able to absorb the price hike right now, the question that remains is: for how long?
In an effort to ease the sting, India's embattled government banned onion exports and scrapped import duties.
High food inflation has dislodged state governments in the past. India's Congress party that leads the ruling coalition has to come up with a solution before the partial state elections later this year.
Al Jazeera's Sohail Rahman reports.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

LinkWithin

Related Posts Plugin for WordPress, Blogger...