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India price hikes loom inflation

2012-07-24 39 Dailymotion

Rising fuel and food prices in India are reviving inflation fears. <br /><br />During the past year, the nation's food price index rose 12.13 percent.<br /><br />Basic vegetables are of main concern as consumers complain about being unable to afford certain dietary staples.<br /><br />The price of onions, for example, has risen by 350%.<br /><br />Up-scale restaurants have also seen a steady increase in prices these last six months, effecting their profit margins. Although they are able to absorb the price hike right now, the question that remains is: for how long?<br /><br />In an effort to ease the sting, India's embattled government banned onion exports and scrapped import duties. <br /><br />High food inflation has dislodged state governments in the past. India's Congress party that leads the ruling coalition has to come up with a solution before the partial state elections later this year. <br /><br />Al Jazeera's Sohail Rahman reports.

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