High food prices a policy headache

Inflation accelerated to a 14-month high in November as prices of vegetables and food items soared, raising the prospects for an increase in interest rates when RBI reviews monetary policy on Wednesday. Official data released on Monday showed the index, rose 7.5 per cent in November, above the previous month's 7 per cent and 7.2 per cent in the November last year. This was also above markets expectations of a 7 per cent increase.

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