Food inflation rises 9.41 percent; Pranab expresses concern

By IANS,

New Delhi : India’s food inflation accelerated to 9.41 percent for the week ended Sep 24 as compared to 9.13 percent in the previous week due to sharp rise in the prices of milk, vegetables, fruits and protein-based products, official data showed Friday.


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Finance Minister Pranab Mukherjee said acceleration in the prices of food and other essential commodities remained a matter of concern and the government was constantly in touch with the Reserve Bank of India to bring down inflation to a comfortable level.

“Inflation is definitely a matter of concern. We shall have to see how to bring it down to a moderate level. I am constantly in touch with the RBI and other experts in this area,” Mukherjee told reporters here.

Food inflation has risen sharply during the last three weeks under review. Food inflation was at 8.84 percent for the week ended Sep 10.

Pulses became costlier by 7.54 percent during the week ended Sep 24 as compared to 4.86 percent increase in the previous week. Fruits became costlier by 11.72 percent prices of milk rose by 10.35 percent during the week under review year-on-year, according to data released by the commerce and industry ministry.

The primary articles index, which has a 20.12 percent weight in the wholesale price index, rose by 10.84 percent during the week under review as compared to 11.43 percent in the previous week.

The rise in the index of fuel and power remained unchanged at the previous week’s level of 14.69 percent.

The index for non-food articles rose at a much slower rate of 10.77 percent during the week ended Sep 24 as compared to 12.89 percent in the previous week.

Inflation has remained stubbornly high near double-digit since January 2010. The headline inflation based on the wholesale price index was recorded at 9.78 percent in August, according to the latest official data.

The stubbornly high inflation might prompt the RBI to hike policy rates again. The central bank has hiked key policy rates 12th time since January 2010.

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

Onions: 10.58 percent

Vegetables: 14.88 percent

Fruits: 11.72 percent

Potatoes: 9.34 percent

Eggs, meat, fish: 10.33 percent

Cereals: 4.57 percent

Rice: 4.13 percent

Wheat: (-) 1.01 percent

Pulses: 7.54 percent

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