Food inflation increases to double digits

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Food inflation increases to double digits
Food inflation was once again in the double-digit. It was here after a gap of five months. For the week ended August 20, food inflation was 10.05%, as onion, vegetables, fruits, and protein-based items became pricey.

The whole Wholesale Price Index (WPI), which shows food inflation, was 9.80% in the previous week. The rate of price rise of food items was over 15% during the same period of last year.

After March 12, for the first time food inflation is again in double-digits. At that time it was at 10.05%.

According to official data, prices of onion soared by 57.01% year-on-year, potato went up by 13.31% during the week.

Meanwhile fruits saw its price go up by 21.58% and vegetables were up by 15.78% on an annual basis.

Egg, meat and fish saw their price go up by 12.62%. Milk and some cereals became dearer by 9.22% and 4.64% respectively.

Pulses went cheaper by 4.16% and wheat by 2.52% year-on-year.

On the whole, primary articles saw 12.93% inflation for the week ended August 20, compared to 12.40% in the previous week. Primary articles command a share of more than 20% in the WPI.

However, inflation in non-food articles, which include fibers, oilseeds and minerals, stood at 17.19%, down from 17.80% in the previous week.

VIEW: This will increase the fear that the RBI will take stringent action of increase rates. Stock market need to be monitored closely and fresh positions should not be made until the RBI announcements are made.

Read more about: inflation, wpi, capital market
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