Food price index rose 14.44 per cent while the fuel price index climbed 11.63 per cent in the year to December 18, government data on Thursday showed. In the prior week, annual food and fuel inflation stood at 12.13 per cent and 10.74 per cent respectively. The primary articles price index was up 17.24 per cent in the latest week compared with an annual rise of 15.35 per cent a week earlier. The...

If the price rise is due to production shortfall, how does one explain the near doubling of the price within a few days? The sharply rising onion prices have raised the suspicion that speculators are manipulating a shortage situation. First, a few facts. In retail markets, onion prices have soared from Rs 10-11 per kg in June to as high as Rs 70-80 on Dec 21. Even more significantly, prices zoomed by...

The spectre of rising onion prices is haunting Indian politics again. As prices trebled over a period of three weeks, touching Rs.90 a kg in some parts of the country, the liliaceous plant, whose bulb is the mainstay of many Indian staple recipes, became a topic of debate and discussion not only for ordinary consumers, but for economists and policymakers as well. India is the world's second largest producer of...

The Prime Minister’s Office has given direct orders to top officials of Sharad Pawar’s department to get cracking after the food minister said it would take “two to three weeks” for onion prices to stabilise. Sources said an annoyed Manmohan Singh has conveyed to Pawar that the time frame set by the minister is too long, especially since prices have skyrocketed within a week. Expressing deep concern over the “extraordinary price rise...

This week’s good news on food price inflation was evened out by the bad news on fuel prices hike. But, both were along expected lines. Thanks to the so-called “base effect” — the fact that last year this time food prices were rising sharply and since last year’s prices become the denominator in this year’s price ratio, the rate of inflation would be expected to moderate — and to an...