India's food inflation eased for the second straight week due to lower fruit and vegetable prices, data showed on Thursday, but an acceleration in headline inflation in December is likely to put pressure on the central bank to raise rates at a policy review next week.
At 15.5 percent, food inflation remains high but has eased from a one-year high of 18.32 percent touched in late December, mainly due to a spike in onion and tomato prices.
Here are some facts about what led to the sudden rise in food prices and how the government is likely to deal with it.
Text & Images courtesy: Reuters