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Food inflation continued to surge, climbing to its highest level in close to 10 months in the third week of October.
This was mainly on account of a sharp surge in price levels of vegetables, pulses, poultry items and milk during the week, which marked the festival season across the country.
Data released by the Government on Thursday showed food inflation, as measured by the Wholesale Price Index (WPI), was recorded at 12.21 per cent during the week ended October 22 as against the previous week's annual rise of 11.43 per cent.
Non-food articles and fuels, though, showed some moderation during the latest reported week.
According to analysts, prices of food articles are expected to ease towards the end of the festive season, which could help cool inflation in the coming weeks.
The base effect should also come into play in the second week of November, which could further exert downward pressure on the food inflation estimates. Food inflation was recorded at 13.55 per cent in the corresponding week of the previous year.
During the latest week, vegetables were up 29 per cent year-on-year, while pulses, fruits and milk were all up 12 per cent each. Eggs, meat and fish were also up nearly 14 per cent on an annual basis, while cereal prices shot up over 4 per cent.
Pranab concern
Commenting on the latest food inflation numbers, the Finance Minister, Mr Pranab Mukherjee, said the rise in rate of price rise was a matter of “grave concern”, but attributed this partly to the festive season. “Inflation is still a matter of grave concern. This is also the effect of the festive season. November onward, the real trend for the remaining four months of the fiscal will be available,” he told reporters here.
During the latest reported week, the spike in prices of protein items such as poultry products and milk, in week-on-week terms, could be partly attributed to seasonal variations in consumption demand.
Analysts said the easing in prices of cereals, pulses and vegetables in week-on-week terms is an encouraging sign.
Inflation in the primary articles was recorded at 12.08 per cent, compared to 11.75 per cent in the previous week.
Primary articles have over 20 per cent weight in the wholesale price index. Inflation in non-food articles, including fibres, oil seeds and minerals, was recorded at 6.43 per cent during the week under review, as against 7.67 per cent in the week ended October 15.
Fuel and power inflation stood at 14.50 per cent during the week ended October 22, compared to 14.70 per cent in the previous week.
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