New series: Food inflation crosses 15%

The figure is compiled under the new series with 2004-05 as the base year. Inflation for previous week settled at 11.47 per cent under the old series.

Food inflation reached 15.10 per cent for the week ended September 4, as cereals, select vegetables and milk became costlier after rains disrupted the supplies.

This figure, though not exactly comparable to the previous week's 11.47 per cent because it is calculated on the new series with 2004-05 as the base year, justified the Reserve Bank of India's move to raise its short-term lending and borrowing rates at the monetary policy review on Thursday.

This is the third consecutive week when food inflation has shown an upward trend, after a brief period of moderation in July and first half of August.

On yearly basis, cereals prices rose 7.16 per cent, driven mainly by higher prices of pulses, rice and wheat, compared to the same period last year.

While pulses became dearer by 6.10 per cent, prices of rice and wheat rose 5.74 per cent and 10.16 per cent, respectively, during the week under review, on yearly basis.

Among other food items, milk prices soared 23.41 per cent during the week, compared to the same period last year, while that of fruits went up 8.27 per cent.

Vegetables also became dearer by 3.82 per cent on an annual basis, while potato and onions became cheaper by 45.92 and 4.17 per cent.