Economy

Food inflation surges to 11.43% on base effect

Anil Sasi New Delhi | Updated on October 27, 2011

Food inflation inched up to 11.43 per cent in mid-October on account of an increase in the year-on-year price levels of vegetables and pulses apart from base effect.   -  The Hindu Business Line

Food inflation inched up to 11.43 per cent in mid-October, sharply higher than the previous week’s annual rise of 10.6 per cent, mainly on account of the statistical base effect of the previous year.

Inflation in the case of non-food items and the fuels group, however, eased during the latest reported week.

According to data released by the Government on Thursday, an increase in the year-on-year price levels of vegetables and pulses contributed to the surge in the annual WPI-based food inflation for the week ended October 15, apart from the base effect. Sequentially food inflation was up 0.25 per cent.

The primary articles index was up 11.75 per cent, compared with an annual rise of 11.18 per cent a week earlier.

Non-food articles inflation eased to 7.67 per cent from 8.51 per cent a week earlier with fibres showing a decline. Fuel inflation too eased to 14.7 per cent during the latest reported week from 15.17 per cent.

Headline inflation in September was recorded at 9.72 per cent, much above the RBI's comfort level. The RBI has now hiked interest rates by 375 basis points since March 2010 to tame inflation.

Published on October 27, 2011

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