The Narendra Modi government has been hit by a spate of bad economic data within a month of assuming office. Last week, crude prices hit a nine-month high on Iraq crisis pressuring the rupee.
Now, rising food prices has emerged as one of the big challenges for the government, which won a massive mandate last month on the promise that it would control stubbornly high inflation.
Elevated costs for food items, particularly vegetables and fruits have added to inflationary pressures. Higher potato and onion prices pushed up food inflation to 9.50 per cent in May from 8.64 percent in April.
Summer monsoon rains are vital for 55 per cent of the country's farmlands that lack irrigation facilities.
Rising fuel prices has hurt the rupee, which slipped past 60.50 per dollar for the first time in one and half months today.
All these problems are likely to push back a rate cut, vital to kick-start an economy growing at the slowest pace in 25 years.
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