ibnlive » India

Oct 16, 2013 at 09:36am IST

Price rise a dampener this festive season, inflation at a 3-year high

New Delhi/Srinagar: As the country celebrates Eid on Wednesday, price rise has become a dampener for millions of Indians this festive month. The prices of food commodities have pushed food inflation to a 3-year high of 18 per cent in August.

Onion is the main villain among vegetables, followed by cereals, egg, fish and meat. The soaring prices are likely to dim the prospects of a rate cut by the Reserve Bank of India to boost the struggling economy.

Meat price in Kashmir has gone up to Rs 350 to 370 because of the Eid rush even as it was last month selling at Rs 320. Buying chicken per kg is for Rs 150, which is again a hike of Rs 10.

Planning Commission Deputy Chairman Montek Singh Ahluwalia however has expressed hope that the inflation will come down in the coming months.

Vegetable prices will cool down in the coming weeks as ample supplies likely to hit the markets, Minister of State for Agriculture and Food Processing Tariq Anwar said on Tuesday. "Due to continuous rains, adequate supplies from agricultural fields could not reach markets. We feel prices will cool down in the coming weeks. Consumers will see the benefit of good rains," Anwar told reporters on the sidelines of launch of an investors portal for food processing industry.

(With additional information from PTI)