Agflation in the Indian Economy

Steep increases in the costs of ingredients have contributed to high rates of food price inflation in the Indian economy. And rising food prices have been one of the key reasons why inflation in India is now amongst the highest in the world - on some estimates, food prices account for half of the acceleration in consumer price inflation posing a policy dilemma for the Indian central bank. This BBC news video provides good background on the issue of cost-push inflation in India and the impact of higher food prices on real incomes.