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Food inflation at 2-month high of 9.01%

The latest numbers are the highest level of food inflation since the week ended March 26 when it had stood at at 9.18 per cent. For the last two months, the rate of price rise of food items has been below the 8 per cent mark.

twitter-logo PTI   New Delhi     Last Updated: June 9, 2011  | 12:32 IST

Notwithstanding the government's projections of a moderation in the rate of price rise of food items, food inflation jumped to a two-month high of 9.01 per cent for the week ended May 28 on the back of costlier fruits, onions and protein-based items.

Food inflation , as measured by the Wholesale Price Index (WPI), was 8.06 per cent in the previous week, while it was as high as 20.62 per cent during the last week of May, 2010.

The latest numbers are the highest level of food inflation since the week ended March 26 when it had stood at at 9.18 per cent. For the last two months, the rate of price rise of food items has been below the 8 per cent mark.

As per data released by the government today, fruits became by 30.78 per cent more expensive year-on-year, while onions were up by over 14 per cent.

During the week under review, milk prices were up by 8.49 per cent and egg, meat and fish became dearer by 6.99 per cent. Cereals also became costlier by 5.77 per cent on an annual basis.

However, the prices of pulses went down by 9.49 per cent year-on-year, while vegetables and potatoes became cheaper by 0.20 per cent and 2.87 per cent.

Inflation in overall primary articles, which have a weight of 20 per cent in the headline WPI, was reported at 11.52 per cent during the week under review, up from 10.87 per cent in the previous week.

However, inflation of non-food primary articles fell to 20.97 per cent, as against 21.31 per cent in the previous week. This is likely to bring some cheer to the government and the Reserve Bank, who have termed inflationary pressure from the core (non-food) segment as the biggest threat to the economy in the near future.

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