Food inflation rises to 8.55 pc for week ended May 14

Food inflation shot up to 8.55 per cent for the week ended May 14, the highest level in four weeks, as prices of fruits, cereals and protein-based items escalated.

Food inflation, as measured by the Wholesale Price Index (WPI), was on a declining trajectory for the previous three weeks. The figure for the seven-day period under review was 1.08 percentage points higher than the 7.47 per cent inflation rate recorded in the previous week.

During the week ended May 14, cereals became costlier by 5.03 per cent year-on-year and prices of onions were up by 8.32 per cent, official data released here showed.
Prices of fruit rose by 32.37 per cent, milk by 5.53 per cent and eggs, meat and fish by 8.26 per cent. Rice also became 2.63 per cent more expensive and potatoes 0.17 per cent costlier on an annual basis.

Food inflation remained in double digits for most of 2010, before showing signs of moderation from March, 2011. Prices of vegetables and pulses declined by 1.46 per cent and 9.49 per cent, respectively. Also, wheat became cheaper by 0.30 per cent on an annual basis.

On an annual basis, the primary articles category saw an inflation rate of 11.60 per cent. On the other hand, prices of non-food primary articles were up 23.22 per cent during the week under review.

Fibres became dearer by almost 61 per cent, while minerals were up 11.78 per cent. The government and Reserve Bank had said that in the months to come, inflationary pressure would be more from core (non-food) items on account of high global prices of commodities, particularly crude.