Surge in food prices pushes up inflation
A continuing surge in food prices pushed headline inflation to 7.55 per cent in May from 7.23 per cent in April, rendering it slightly trickier for the Reserve Bank of India to decide on whether to initiate monetary steps to spur flagging growth or hold the policy rates for now to contain the price spiral.
The government said that the food inflation has been coming down with prices of pulses and vegetables declining and rates of other edible items gradually stabilising.