India's annual inflation rate continues to climb according to data released Friday, a day after the government announced a slew of measures to check rising prices, according to dpa. Inflation, based on wholesale prices, rose to 8.43 per cent in December from 7.48 per cent in November, the government said. Food inflation, currently the cause of great concern for the government, however, dipped to 16.91 per cent for the week that ended January 1, compared to 18.32 the previous week, largely on account of increased imports. Prime Minister Manmohan Singh's United Progressive Alliance government has been struggling to control rising prices which have led to popular discontent and protest rallies by opposition parties across the country. The food inflation was led by high prices of onions and other vegetables largely due to crop damage by unseasonal rains. After a week of consultations, the Prime Minister's Office (PMO) late Thursday announced several long- and medium-term measures to tackle the situation. These included regular reviews of the export and import of essential commodities and easing of import restrictions and tariffs if needed to boost domestic supplies. India has banned the export of onions, edible oils, pulses and non-basmati rice. A temporary ban on wheat export was being considered, PTI news agency reported citing government sources. The government is also importing onions from Pakistan. The PMO release also said strict action would be taken against hoarders and black marketeers found manipulating market prices. An inter-ministerial group would be set up to review the inflation situation on a regular basis, particularly in reference to food articles, the PMO release said. The current bout of inflation was driven by a rise in prices of vegetables and fruit which were difficult to manage as these commodities were not held in public stock, the release added. It said a rise in prices of milk, eggs, meat and fish was due to a rise in incomes due to the fast growth of the economy and welfare programmes that had increased the purchasing power of relatively poor people. India's central bank was likely to raise key interest rates later this month in an effort to try contain inflation, analysts said.
