Food inflation softens to 16.81 percent
January 21st, 2010 - 8:50 pm ICT by ANI
New Delhi, Jan 21(ANI): Food inflation based on the wholesale price index softened to 16.81 percent for the week ended January 9, although potato and pulses continued to cost high. Earlier, the food inflation for the week ended January 2, stood at 17.28 percent, due to soaring prices of essential commodities.
According to the government data, on year-over-year milk prices soared by 13.95 percent and it is expected to surge further on lower availability.
Potato remained expensive during the period rising as much as 49.31 percent from last year, followed by prices of pulses which jumped by 47.90 percent.
The marginal decrease is being seen after Prime Minister Dr. Manmohan Singh chaired the Cabinet Committee on Prices (CCP) meeting to discuss the issue of spiraling food prices, including sugar prices.
The CCP has reportedly taken decisions on increasing the availability of sugar and other commodities, to contain food inflation after it had soared to 20 percent in the first week of December.
Several Ministers including Planning Commission Deputy Chairman Montek Singh Ahluwalia had earlier said that the current food inflation would be eased by the end of next month.
“The dominant part of inflation that is a concern is food price inflation. I don’t believe that is the result of excess liquidity though clearly when inflation begins to go up, I mean, one of the instruments that people use is the monetary instrument. So I don’t want to speculate, I think to come to a conclusion because we have a problem with one set of prices, what is the ideal way of responding, that is a complex issue,” Ahluwalia said.
“I think in our case, a lot of it has to do with expectations, managing the supply side and better use of existing stock. Plus, I think that with fears of the negative effect of the drought being reduced there will be a softening in the food price inflation in the next month,” he added. (ANI)
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Tags: cabinet committee, commodities, deputy chairman, dr manmohan singh, drought, excess liquidity, food price, food prices, government data, jan 21, manmohan, manmohan singh, milk prices, montek singh ahluwalia, New Delhi, planning commission, price inflation, prime minister, sugar prices, wholesale price index
