Food inflation surged to 17.47 per cent in the third week of November, fuelled by expensive onions and other essentials, prompting experts to ask RBI to tighten its monetary stance.
RBI itself was in agreement that it would have to reassess the accommodative policy stance going forward, since the economy is on a rebound and prices were rising.
While monetary policy does not have a direct bearing on bringing down prices of food products, the demand for tightening money supply is directed towards preventing food inflation from spreading to manufactured items.
Food inflation stood at 15.58 per cent a week ago.
On a weekly basis, onions turned expensive by over 12 per cent, while it surged by 30.89 per cent on a yearly basis.
Pulses rose over 37 per cent, while rice wheat, fruits, milk turned expensive by over 10 per cent year on year.
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