Food prices must be reined in: Rangarajan

New Delhi, Dec 3 (PTI) The Prime Minister's economic panel
Thursday voiced the need to control food inflation from the
current 17 per cent level to check an upward spiral in
manufacturing inflation.
"Food prices must be controlled, otherwise they have a
tendency to lead to manufacturing inflation," Prime Minister's
Economic Advisory Council Chairman C Rangarajan said here.
He said this will require monetary action by the Reserve
Bank, especially towards managing money supply.
"Inflation is a matter of concern, particularly food
inflation. There is a concern of rising food prices,"
Rangarajan said.
Food inflation rose to 17.47 per cent in the third week
of November against 15.58 per cent in the previous week.
Earlier this week, there was heated debate on food prices in
Parliament.
He said overall inflation would be in the range of 6-6.5
per cent, as expected by the council. "But it should be
brought down."
Overall inflation doubled to 1.34 per cent in October
compared to 0.50 per cent in the previous month as food items
have less weight on the wholesale price index.
Manufactured products have over 60 per cent weight on the
wholesale price index. Manufacturing inflation was just 1.36
per cent in October against 9.41 per cent a year ago. (MORE)
PTI