http://online.wsj.com/article/SB10001424052748704483004575523373835197634.html?mod=googlenews_wsj
This article reports on food prices in India have risen for the fifth-straight week as floods in parts of the country resulted in a lack of supplies of vegetables and fruits, pushing prices higher and increasing the likelihood of further policy tightening by the central bank.
In some areas, food prices had started to ease thanks to improved supplies following good seasonal rains this year, but some parts of the country suffered from floods that disrupted transport, damaged crops and, along with higher demand, led to a fresh spike in prices.
The government is hoping that summer-sown crops will boost market supplies from October and help bring down prices. Some economists say the Reserve Bank of India can't do much to control the rise in prices as it's largely due to supply disruptions, but the central bank may be forced to hasten rate hikes to manage inflation expectations if food prices remain at such high levels.
I am not generally interested in economical issues, partially becasue it is not an area I know much about. What I can say is that an increase in food prices, or any good that we depend on, can take a major toll on communities it is effecting. Hopefully the issue is controlled with the help of government and the Central Bank to reduce and manage inflation issues.
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