Food Inflation Inches up to 9.13 Percent for Weak Ended Sept 17

Friday, 30 September 2011, 04:54 Hrs
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Bangalore: Food inflation jumped to 9.13% for the week ended September 17 from 8.84% in the previous week, mainly due to a rise in prices of potatoes, pulses and poultry.

Finance Minister Pranab Mukherjee termed the rise in food inflation as an area of "grave concern".

While prices of onions eased marginally during the week, gram, masoor, arhar, urad and poultry rates firmed up on an annual basis, as per Wholesale Price Index (WPI) data released by the government today.

Potato prices, too, firmed up by about 15% on an annual basis.

However, as a whole, inflation in the fruit and vegetable segments eased during the week under review vis-a-vis the same period last year.

In the week ended September 10, food inflation had declined to 8.84% from 9.47% in the previous week.

"These fluctuations are taking place and it is one of the areas of grave concern," Mukherjee told reporters, adding, "(Food inflation)... is perilously close to double digits."

As per the WPI data, inflation in cereals, milk, eggs, meat and fish also eased to 13.17% during the week under review.

Overall, inflation in primary articles stood at 11.43% for the week ending September 17, compared to 12.17% in the previous week.

Primary articles constitute over 20% of the WPI basket.

Non-food articles, which include fibres, oil seeds and minerals, recorded 12.89% inflation during the week ended September 17, down from 17.42% in the previous week.

Meanwhile, inflation in the fuel and power segment went up to 14.69% during the week ended September 17 from 13.96% in the previous seven-day period.

Headline inflation, which factors in manufactured items, fuels and non-food primary items, in addition to food commodities, stood at a 13-month high of 9.78% in August.

The Reserve Bank has already hiked policy rates 12 times since March, 2010, to tame demand and curb inflation.
Source: PTI
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