Thu, 11 Aug 2011 13:57:27 GMT

Food inflation at 18-week high of 9.9%

Food inflation surged to a four-and-half month high of 9.90% during the week ended July 30 on the back of costlier onions, fruits, vegetables and protein-based items.

Food inflation at 18-week high of 9.9%

New Delhi: Food inflation, as measured by Wholesale Price Index (WPI), stood at 8.04% in the previous week. The rate of price rise in food items was recorded at 16.45% in the last week of July, 2010.

As per data released by the government today, prices of onions went up by 36.62% year-on-year, while fruits became 16.49% more expensive.

During the week under review, vegetables overall became dearer by 14.61% and prices of eggs, meat and fish were up by 13.44% on an annual basis.

In addition, cereal prices went up by 6.22%, potatoes by 10.85% and milk by 10.38%.

However, pulses became cheaper by almost 6% on an annual basis.

The latest numbers are likely to put further pressure on the government and the Reserve Bank, who have been battling the high rate of price rise over a period of one-and-a-half years.

This is the highest rate of price rise in food items since the week ended March 12, when food inflation stood at 10.05%.

Overall, primary articles recorded inflation of 12.22% for the week ended July 30, up from 10.99% in the previous week. Primary articles have a share of over 20% in the WPI.

However, inflation in non-food articles, which include fibres, oil seeds and minerals, fell to 15.05% from 15.60% in the previous week.

Source: Business Standard

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