Food inflation back to double digits

Perhaps the single most pressing economic problem that the Indian government faces today is that of rising prices. Especially the rise in food articles. It is especially important because it affects the middle class and the poor a great deal. There were some signs of relief for a few weeks. Alas, that was not to last. As the chart of the day show, food inflation is back in the double digits. The figures for individual food items are even more worrying. The price of pulses is up 20.7% YoY, rice 6.9% YoY, wheat 7.9% YoY, cereals 7% YoY and milk 19% YoY for the week ending 31st July, 2010. Clearly the headaches of the government are far from over.