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India inflation rises to 5.79%
August 14, 2013, 11:20 am


Onion prices have risen by a staggering 145 per cent [AP]

India’s annual inflation rate rose to a five-month high in July, according to a report by the country’s Commerce Ministry.

The wholesale-price index, a main gauge of inflation, rose 5.79 per cent exceeding June’s 4.86 per cent climb.

The report said food prices climbed 11.91 per cent last month from a year earlier.

India’s national currency, the rupee, has fallen around 12 per cent against the dollar since May.

Onion prices have risen a staggering 145 per cent, with pressure rising on the government to halt exports of the vegetable.

The Indian Finance Ministry unveiled a set of measures on Monday to check the widening current account deficit (CAD) and stem the rupee slide in a volatile foreign exchange market.

New measures include quasi-sovereign bonds by state-owned firms, relaxation in norms to enable banks garner deposits from non-resident Indians and an increase in import duties on non-essential goods like fridges and television sets.

The Indian government also hiked the customs duty on gold, platinum and silver to 10 per cent on Tuesday.

Source: Agencies