Indian food prices have hit their highest level in more than a year, rising at an annual rate of 18 per cent in what economists have taken as a worrying sign that the impact of surging commodity prices is hitting the broader economy.
Food inflation in India is being driven by many of the same factors that have pushed the price of global commodities such as wheat and barley to record highs. It also highlights rising fears of a broader crisis in the developing world, with the UN’s Food and Agricultural Organisation warning this week that global prices had surpassed levels seen during the 2007-08 crisis.
India’s commerce and industry ministry said on Thursday that food prices rose at an annual rate of 18.32 per cent in the week to December 25.
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