New Delhi, April 22: Food inflation rose to 17.65 per cent in the second week of April, and all eyes are now on tomorrows monsoon forecast by the meteorological department.
The Opposition is ready to move a cut motion against the Finance Bill next week on this issue. A cut motion puts the strength of the government in the Lok Sabha to test. If it is adopted, the government stands defeated on a money matter and has to resign. However, the Congress-led government is expected to sail through the motion next week.
Through this motion, the Opposition hopes to roll back the duty hikes in crude and petroleum products announced in the budget, which should lead to the lowering of petrol and diesel prices.
We have to see the monsoon outlook to understand how it will ease out the inflationary expectations. Monsoon will decide the future trajectory of food inflation, Yes Bank economist Shubhada Rao said.
During the week ended April 10, prices of pulses were up 28.77 per cent, milk 22 per cent, fruits 18.81 per cent, wheat 11.18 per cent and rice 9.33 per cent. However, certain food items such as potatoes turned cheaper by over 30 per cent during the week because of a supply glut in many markets. Onion prices fell over 6 per cent year-on-year.
Economists fear that rising food prices will further push up overall inflation as manufactured products and fuel items are also witnessing inflationary pressure.