PHOTO: Nimrod Bar, Wikipedia
Well time is now taking its toll as India begins to see it’s food prices rise dramatically.
A panel of Indian government advisers have called for immediate interest rate rises to prevent double-digit inflation spinning out of control. “Further tightening is required. Inflation is more than twice the comfort zone,” the Economic Advisory Council said.
The central bank has been slow to act as India’s inflation rises to 11pc, the highest in the G20 group of countries. The benchmark interest rate is heavily negative in real terms at just 5.5pc.
Food prices have been soaring despite the release of grain stocks. This has led to led to harsh criticism from the Bharatiya Janata nationalists and the Communists.
– Ambrose Evans-Pritchard, Telegraph
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