Food price inflation rises again; reaches 12.81 per cent

The annual rate of inflation based on the wholesale price index of food articles in the country, which showed a declining trend over the two week ended 26 June 2010, rose again to 12.81 per cent during the week ended 3 July 2010.

Food price inflation stood at 11.57 per cent in the comparable week a year ago (week ended 4 July 2009).

The spike in inflation during the week ended 3 July 2010 was due mainly to the rise in prices of bajra (3 per cent), fish-inland and mutton (2 per cent each) and eggs, wheat and maize (1 per cent each).

The build-up of food price inflation so far during the financial year (beginning 1 April 2010) also stood at 2.74 per cent against 2.82 per cent in the previous week. The build-up of food price inflation was 7.41 per cent in the corresponding week of the previous year.

The index for the 'food articles' group declined 0.1 per cent to 295.8 (provisional) from 296.0 (provisional) in the previous week due to lower prices of fruits and vegetables (-2 per cent) and tea and masur (1 per cent each). However, the prices of bajra (3 per cent), fish-inland and mutton (2 per cent each) and eggs, wheat and maize (1 per cent each) moved up.

Inflation rate based on the wholesale price index of non-food articles also showed an increase to 18.85 per cent during the week ended 3 July 2010 from 18.60 per cent in the previous week. Inflation rate for the group stood at a negative (-)1.78 per cent in the comparable week of the previous year.