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India’s food inflation rises to 16.35pc

India’s fuel inflation quickened in late March and food prices climbed, making double-digit headline inflation a near certainty, which could prompt the Reserve Bank of India (RBI) to increase rates for the second time in as many months in April.

The food price index rose an annual 16.35 percent in the 12 months up to 20 March, above the previous week’s reading of 16.22 percent.

Last week the RBI lunderscored the need to curb inflationary pressures fuelled by increased capacity utilisation and rising energy and commodity prices, reflecting a shift in its focus to contain the headline inflation that is close to 10 percent.