A surge in food prices ripped common man's pockets this year. Prices of kitchen essentials such as onions spiked to a record Rs 100 per kg, while tomato prices hit Rs 80 in some states during the year. As a result, food inflation touched the double digit mark this year.
The UPA government paid for its failure to control prices in the assembly polls held recently. Analysts say the government may feel the heat in next year's general elections as well if inflation is not controlled.
Retail inflation, measured by Consumer Price Index, stayed in double digits for most months of the year. In November, it hit a high of 11.24 per cent. Retail prices were driven higher by costlier vegetables. Price rise in onions stood at 190 per cent in November, which raised the vegetable basket inflation to 95.25 per cent.
Wholesale price based inflation rose to 7.52 per cent in November, the highest level seen in 14 months.
The Reserve Bank tried to tame prices by hiking key lending rates, but WPI inflation continues to stay above the central bank's comfort level of 4-5 per cent.
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