Food inflation on the rise to 9.11%

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Food inflation on the rise to 9.11%
Food inflation went through the roof and touched its two-and-half-month high at 9.13% again in the week that ended during June 11. This was on account of costlier fruits, milk, onions and protein-based items.

The food inflation, measured in Wholesale Price Index (WPI), stood at 8.96 per cent during the previous week. The same was near 23% during the second week of June, 2010.

Within a week the food inflation has crossed the psychological mark of 9% mark after a one week gap.

The current food inflation numbers are the highest, the last time it was so high was for the week ending on March 26, 2011, the rate of price rise of food items has then touched 9.18%.

Government data released today show – fruits was dearer by 28.66% year-on-year, the rate of milk went up by 15.30%, for the same period.

During the week under review, prices of onions went up by 11.89% and eggs, meat and fish by 10.56% year-on-year. During the same time potatoes became dearer by 0.71%.

However, prices of pulses, wheat and vegetables fell down during the week. While pulses became 10.34% cheaper, vegetables 9.27% and wheat was down 1%.

Overall, primary articles reported inflation of 12.62% during the period under review, down from 12.86% in the previous week. Primary articles have a share of 20% in the WPI.

The latest numbers on food inflation prices are after the India Meteorological Department's (IMD) forecast that monsoon rains are expected to be below normal at 95% of the Long Period Average (LPA). The margin for error stands at a plus or minus 4%.

The immediate worry for policy makers and investors is that a below normal monsoon can have a serious fallout on agricultural output.

Meanwhile, inflation of non-food primary articles stood at 18.43% for the week ended June 11 as against 20.20% during the previous week.

Fibres became expensive by 43.77%. Meanwhile, minerals went up by 25.90%. Fuel and power became dearer by 12.84% and petrol was up 33.23% year-on-year.

OneIndia Money

Read more about: inflation, economy, price
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