Food inflation rises to 9.41%

Food inflation climbed up to inch closer to the double digit mark in the third week of September, even as non-food articles eased sharply.

The annual WPI-based inflation estimate for the week ended September 24 rose 9.41 per cent, up from the 9.13 per cent year-on-year growth recorded in the previous reported week, according to data released by the Ministry of Commerce and Industry on Friday. This was largely on account of increases in the year-on-year inflation estimates for cereals, pulses and vegetables. Food inflation had clocked in at 16.88 per cent in the corresponding week of 2010.

Non-food articles recorded a 10.77 per cent increase in inflation during the latest reported week, sharply lower than the 12.89 per cent reported in the previous week, with fibres, oil seeds and minerals easing from the previous week's levels. Inflation in the fuel and power group was unchanged at the previous week's level of 14.69 per cent.

“Inflation is definitely a matter of concern. We shall have to see how to bring it down to a moderate level. I am constantly in touch with the RBI,” the Finance Minister, Mr Pranab Mukherjee, was reported as saying in reaction to the latest numbers. The monsoon was normal this year and the Government had earlier exuded hope this would bring down food prices.

Headline inflation, which includes data for manufactured items, fuels and non-food primary items, in addition to food products, had touched a 13-month high of 9.78 per cent in August. The Reserve Bank has already hiked policy rates 12 times since March 2010, to tame demand and curb inflation.

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