Economy

Food inflation climbs to 10-week high

PTI New Delhi | Updated on January 03, 2011 Published on December 30, 2010

Food inflation is still far below the level of 21.19 per cent seen during the same week last year. -- A. Roy Chowdhury   -  Business Line

Food inflation surged to a 10-week high of 14.44 per cent for the week ended December 18 as prices of vegetables, particularly onions, fruits, cereals and protein-based products, continued to escalate.

Food inflation stood at 12.13 per cent in the previous week. This is the fifth consecutive week when the rate of price rise of food items has increased.

However, food inflation is still far below the level of 21.19 per cent seen during the same week last year.

On an annual basis, onions became costlier by 4.36 per cent, whereas on a week-on-week basis, the increase was 3.49 per cent, government data released here shows.

The rate of price rise of vegetables was 5.78 per cent on an annual basis, while on a weekly basis, it was 4.58 per cent.

Fruits became 19.01 per cent more expensive, while milk grew 24.64 per cent costlier on a year-on-year basis during the week under review.

Similarly, eggs, meat and fish prices rose by 31.21 per cent on an annual basis.

Overall, prices of cereal went up by 7.77 per cent year-on-year, while pulses became 13.82 per cent dearer.

The price of rice rose by 7.36 per cent year-on-year and wheat by 8.32 per cent.

On a weekly basis, however, prices of most items — barring vegetables — appreciated in a narrow range.

A good monsoon and prospects of a bountiful kharif harvest had prompted the Government to exude confidence about a decline in food inflation.

Experts have said that the rise in food inflation is likely to have repercussions on the final WPI inflation figures for December.

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Published on December 30, 2010
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