Food inflation at 10-week high; Pranab terms it unacceptable (Lead)
June 23rd, 2011 - 7:14 pm ICT by IANS
New Delhi, June 23 (IANS) India’s food inflation soared to nearly 10-week high of 9.13 percent for the week ended June 11, prompting Finance Minister Pranab Mukherjee to term the rise as unacceptable.
The annual food inflation rose from 8.96 percent recorded in the previous week to 9.13 percent due to a sharp jump in the prices of protein-based food products, especially milk, eggs, meat and fish, official data showed Thursday.
Reacting on the data, the finance minister said the rise in inflation was not acceptable and the government would make all efforts to cool the price level.
“We are in the region of high inflationary regime, which is not acceptable. It will have to be brought down,” Mukherjee told reporters here.
In a bid to tame inflation, the Reserve Bank of India had hiked rates last week — its 10th increase in key interest rates since March 2010.
“Detailed analysis of food items indicate it is substantially contributed by the milk products, poultry products, fish and certain other items,” added Mukherjee.
Milk became dearer by 15.3 percent, while eggs, meat and fish were costlier by 10.56 percent. Pulses, rice, wheat and onions were, however, cheaper.
As per data released by the commerce and industry ministry, the primary articles index fell to 12.62 percent, compared to 12.86 percent in the previous week.
The index for fuels and power was unchanged at 12.84 percent.
“Food inflation continues to remain over nine percent and well above the comfort level. While commodity price fluctuations, particularly that of crude, continue to have an impact, it is important that domestic supply chain impediments are addressed proactively,” said Anis Chakravarty, director at Deloitte, Haskins and Sells.
“Pricing pressures have not eased in spite of continuing rate hikes by the RBI. Policymakers may well consider alternate measures to address the sluggish situation,” said Chakravarty.
The following are the yearly rise and fall in prices of some main commodities that form the sub-index for food articles:
Onions: 11.89 percent
Vegetables: (-) 9.27 percent
Fruits: 28.66 percent
Potatoes: 0.71 percent
Milk: 15.3 percent
Eggs, meat, fish: 10.56 percent
Cereals: 4.32 percent
Rice: 1.82 percent
Wheat: (-) 1 percent
Pulses: (-) 10.34 percent
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