New Delhi, January 06: Indian corporate lobby groups today said the Reserve Bank’s monetary policy has become an ineffective tool for taming food inflation, which has recorded nearly a year’s high of 18.32 per cent.
“Food prices have once again gone up and this shows that monetary policy has become an ineffective tool for containing food inflation,” Ficci Secretary General Amit Mitra said.
Demand for food items like fruits, vegetables, milk and meat is on the rise and unless there is a substantial increase in production, and clearing of supply chain bottlenecks, “we won’t be able to control inflation”, Mitra said.
Echoing him, PHD Chamber said, a check in price fluctuations and supply chain management can tackle the rising food inflation better.
Food inflation shot up to nearly a year’s high of 18.
–Agencies