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The recent rise in income levels has helped the middle class cope with higher prices, but the poor have been adversely affected. What also helped the middle class and the upper middle class was the lower spend on food as a proportion of their total income.

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India Food Inflation Slows to 10.63 Percent as Onion, Wheat Costs Fall

India’s food inflation slowed to a four-week low as the cost of onions and wheat declined.

An index measuring wholesale prices of agricultural products gained 10.63 percent in the week ended Nov. 5 from a year earlier, the commerce ministry said in a statement in New Delhi today. It climbed 11.81 percent the previous week.

Rising food costs have added to the challenge of curbing inflation in India, which has exceeded 9 percent each month this year. The Reserve Bank of India expects its 13 interest-rate increases since mid-March 2010 to slow price gains, and signaled last ...read full article....

Momentum accelerates for India to open supermarket sector

(Reuters) - The cabinet may decide by next week to allow chains such as the world's largest retailer Wal-Mart Stores Inc to operate in the country with a majority stake under strict local sourcing rules, a senior government source told Reuters.

A draft cabinet note suggesting so-called mult-brand retail foreign firms could hold up to 51 percent ownership has already been reviewed, a senior government source said on Friday.

"We have already sent it to the cabinet for their approval," the source said, adding that a decision could come next week.

Inadequate road, ...read full article....

India Food Inflation Accelerates to 6-Month High of 11.4%

India’s food inflation rate rose to the highest level in more than six months on higher prices of cereals, vegetables, eggs, meat and fish.

An index measuring wholesale prices of agricultural products gained 11.43 percent in the week ended Oct. 15 from a year earlier, the commerce ministry said in a statement in New Delhi today. It rose 10.6 percent the previous week.

Lower production of pulses and inadequate egg and meat supplies may put pressure on food prices, the Reserve Bank of India said this week as it raised interest rates for the 13th time since the start of 201 ...read full article....

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