Reply #36: south asia: Food inflation rises further, at 11.43 percent

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http://timesofindia.indiatimes.com/business/india-business/Food-inflation-rises-further-at-11-43-percent/articleshow/10508388.cms

NEW DELHI: A week after it breached double digits, India's food inflation continued with its upward climb and was recorded at 11.43 percent for the week ended Oct 15, official data showed Thursday.

The rise was due to a jump in prices of pulses, milk and vegetables. Food inflation had crossed double digits in the previous week at 10.6 percent.

The soaring food inflation comes even as the Reserve Bank of India (RBI) hiked key interest rates for the 13th straight time on Tuesday. The central bank has, however, said that it expects inflation to fall from December.

"Inflation rate will begin falling in December 2011 and then continue down a steady path to 7 percent by March 2012. It is expected to moderate further in the first half of 2012-13," RBI Governor Duvvuri Subbarao had said while reading out the second quarter monetary policy review.