By Nick Godt
MUMBAI (MarketWatch) -- India's year-on-year food-inflation rate fell to 8.06% in the week ended May 21, from 8.55% in the previous week, India's Ministry of Commerce and Industry said on Thursday. However, the fuel-price index rose to a 12.54% year-on-year rate from 12.11% the previous week. Earlier, C. Rangarajan, chairman of the Prime Minister's Economic Advisory Council, said India must use all policy tools to bring down rising prices and anchor inflationary expectations to a 4%-5% comfort zone. In April, wholesale inflation came in at 8.66%, down from 8.98% in March. The Reserve Bank of India last month hiked interest rates by a bigger-than-expected 0.5 percentage point, saying that curbing inflation was more important than short-term growth.
