【New Delhi】A surge in food prices ripped common man's pockets. As the result, UPA government paid for its failure in the assembly polls in four states and may feel the heat in next year's general elections as well if it is not controlled.
Prices of kitchen essentials such as onions spiked to a record Rs 100 per kg and tomatoes touched Rs 80 in some states during the year, pushing the food inflation to double digit mark, even as the Reserve Bank tried in vain to contain the price rise.
The retail inflation, which is a better gauge of price rise and measured by Consumer price index, ruled in double digit for most months of the year with the latest November figures coming in at 11.24 per cent.
While the Reserve Bank on its part has been trying to tame the price rise by hiking key lending rates, there hasn't been much impact as the inflation seems to be entrenched.
However in an exclusive interview by Shyamal Majumdar & Manojit Saha, the Reserve Bank of India (RBI) Governor Raghuram Rajan says, "US tapering has come at the right time as markets are relatively stable." He also says central bank has taken action to contain CAD.
【News source】
Inflation remained a big challenge for govt, RBI in 2013
We have to be very careful while raising rates: Raghuram Rajan
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