Food inflation slips a tad to 8.96 percent

June 16th, 2011 - 1:30 pm ICT by IANS  

New Delhi, June 16 (IANS) India’s food inflation slipped a tad to 8.96 percent for the week ended June 4, official data showed Thursday. The latest food inflation figures came ahead of an expected rate hike by the Reserve Bank of India.

The food inflation had risen to a nine-week high at 9.01 percent for the week ended May 28.

The persistently high inflation is expected to result in another rate hike from the Reserve Bank of India (RBI) when it conducts a mid-quarterly review of the monetary policy Thursday noon. Analysts expect at least a 25 basis point increase in the repo rate.

The RBI has hiked key interest rates nine times in the past 14 months to tame inflation and Governor D. Subbarao had said that the central bank’s first priority would be to bring down inflation even if it meant sacrificing growth in the short-term.

As per data released by the commerce and industry ministry, the primary articles index too rose for the week under review to 12.86 percent compared to 11.52 percent in the previous week, while those for fuels and power rose to 12.84 percent as against 12.46 percent recorded for the week ending May 28.

The following are the yearly rise and fall in prices of some main commodities that form the sub-index for food articles:

Onions: 12.17 percent

Vegetables: (-) 1.39 percent

Fruits: 29.92 percent

Potatoes: 1.14 percent

Milk: 10.59 percent

Eggs, meat, fish: 7.31 percent

Cereals: 5.25 percent

Rice: 2.32 percent

Wheat: 0.18 percent

Pulses: (-) 10.12 percent

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