India’s annual food inflation rises after brief lull

August 4th, 2011 - 4:01 pm ICT by IANS  

New Delhi, Aug 4 (IANS) After falling to its lowest level in over two years, India’s food inflation spiked to 8.04 percent for the week ended July 23 because of continuing rise in prices of vegetables, onions and fruits, official data showed Thursday.

Food inflation registered at 7.33 percent in the week ending July 16.

The prices of fruits rose at a pace of 15.97 percent year-on-year compared to 13.90 percent in the previous week, according to data made available by the commerce and industry ministry. Eggs, meat and fish prices also grew but at a slower 6.66 percent, against 6.36 percent in the previous week.

Vegetable prices jumped by 10.20 percent in the week from 7.59 percent in the week before. The rising trend was also seen in cereals prices, which grew by 5.13 percent from 4.82 percent in the week before period.

The primary articles index reported an increase of 10.99 percent for the week under review as compared to 10.49 percent in the previous week, according to the ministry data.

The index for fuels and power, which has a 14.91 percent weight in the wholesale price index, remained stable at 12.12 percent percent during the week under review from 10.49 percent in the previous week.

The headline inflation levels still remain close to double digits.

The Prime Minister’s Economic Advisory Council (PMEAC) and the Reserve Bank of India had predicted headline inflation to remain at elevated levels in the coming months, which could rub on food prices as well.

The C. Rangarajan-headed PMEAC had said some drop in inflation levels could be seen from November.

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

Onions: 22.26 percent

Vegetables: 10.20 percent

Fruits: 15.97 percent

Potatoes: 7.85 percent

Eggs, meat, fish: 6.66 percent

Cereals: 5.13 percent

Rice: 2.35 percent

Wheat: 2.03 percent

Pulses: (-) 7.01 percent

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