Indian Inflation Unexpectedly Accelerates As Food Prices Explode

Wholesale-prices jumped 6.1% year-over-year in August, accelerating from 5.79% in July.

Economists were looking for prices to decelerate to 5.7%.

All of this comes as India’s rupee, while up this month, continues to be one of the world’s worst performing currencies this year.

Food inflation surged 18.1%, the fastest pace in three years.

“Late planting and disruptions in supplies of vegetables and onions due to heavy summer rains have fuelled food inflation,” reported Reuters’ Rajesh Kumar Singh. “Onion prices jumped 51 per cent between July and August.”

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