Economy

Food inflation index drops sharply to 13.07%

Our Bureau New Delhi | Updated on February 11, 2011 Published on February 11, 2011

Snaps 3-week rising trend on lower vegetable prices

Food inflation, based on the annual Wholesale Price Index, snapped a three-week rising trend to ease sharply in end-January, primarily on account of moderating vegetables prices.

While analysts expect vegetable prices to ease further over the coming few weeks, inflation in case of protein-based food products, including pulses and eggs, meat and fish, continued to surge on a sequential basis, increasing worries for policymakers.

The food price index rose 13.07 per cent during the week ended January 29, sharply lower than the 17.05 per cent annual rise in the previous reported week. The fuel price index remained steady at the previous week's estimate of 11.61 per cent, Government data on Thursday showed.

During the latest reported week, the primary articles price index was up 16.24 per cent, compared with an annual rise of 18.44 per cent a week earlier.

During the latest reported week, year-on-year inflation in pulses dipped by 8.63 per cent, potatoes were down 8.87 per cent and wheat by 3.58 per cent, the data showed.

Onions, despite having eased considerably, surged 79 per cent on an annual basis during the latest reported week. Vegetables, as a whole, were up 44.34 per cent on an annual basis during the latest week. Fruits and milk were up by 10.46 per cent and 11.66 per cent respectively, while egg, meat and fish turned expensive by 17.06 per cent year-on-year.

Headline inflation in December was 8.43 per cent, stoked by high food inflation and indications are that the figure could be higher for January. The RBI has raised rates seven times since March last year to quell runaway inflation. In its January 25 policy review, the Central Bank had upwardly revised its end March inflation projection of 5.5 per cent to 7 per cent.

> anil@thehindu.co.in

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on February 11, 2011
This article is closed for comments.
Please Email the Editor