Indian Food Inflation Is Getting Out Of Control

[FarCenter]

Vegetable prices in India spiked 46.59% in July year over year, another ugly bullet point in the country's persistent struggle with massive food inflation.

In particular, the onion — a staple vegetable whose rising prices have dogged ruling parties in the past — saw a particularly dramatic jump. From Mint:

Across cities, onion prices are hovering at anywhere between Rs.50 and Rs.80 a kilo, nearly double last month’s levels. The latest wholesale price index (WPI) numbers released on Wednesday show that onion prices rose 144% in July over the year-ago period, after a similar increase in the previous month. Since January, onion price levels have been nearly double what they were a year ago.

July's heavy rains damaged vegetable crops in areas of the country and contributed to the price hike, according to the Wall Street

Journal.


Read more: http://www.businessinsider.com/indias-food-inflation-2013-8