The declining trend in food price inflation globally may not hold true for inflationary trends faced domestically due to a weakening Indian Rupee vis-a-vis the US Dollar. The recently released FAO Food Price Index (nominal) has shown a declining trend in July for the third consecutive month owing to lower international prices for grains, soy & palm oil, meat, dairy and sugar. (See links below) Based on FAO Food Price...

-Reuters BANGALORE: Inflation likely picked up slightly in July as its falling currency pushed up the price of imports, making raw materials more costly, and on rising food prices, a Reuters poll showed. Wholesale prices, India's key inflation measure, rose an annual 5 percent last month, the poll of 30 economists showed, hitting the ceiling of the Reserve Bank of India's commonly perceived comfort level. That was up slightly up from June's 4.89...

-The Business Standard Under-recovery estimated to touch Rs 1.5 lakh cr in FY14 due to rising crude oil prices & falling rupee The fall in the rupee to a new low this week has made the government jittery, as the under-recovery on petroleum products is threatening to touch Rs 150,000 crore in 2013-14, despite phased diesel decontrol and capping of subsidised cooking gas cylinders. According to the petroleum ministry's estimates, for every rupee...

-The Times of India CHENNAI: A tight vigil against diversion of subsidized fuel meant for domestic use seems to be paying off. The consumption of liquefied petroleum gas (LPG), commonly called cooking gas, has started to dip since government capped sale of subsidized cylinders to every household and for the first time ever, sales have fallen for two successive months in comparison to the corresponding period of the previous year. Consumption...

-The Economic Times KOLKATA: Prices of vegetables and spices have dropped up to 20% in the past month and are likely to remain low as higher output along with the brisk start to the monsoon has calmed the market. The drop in vegetable prices, on top of the global fall in various commodities from aluminium to zinc, is good news for policymakers as stubbornly high inflation has hindered moves to cut interest...