India's food price inflation hits a 10-week high of 14.44 per cent

India's wholesale price-based inflation rate shot up further to 14.44 per cent for the week ended 17 December 2010, up from 12.13 per cent reported in the previous week, amidst a spurt in the prices of vegetables and other essential commodities.

The spike in inflation has been due to an across-the-board jump in the prices of almost all essential commodities, including vegetables and fruits, meat, cereals and pulses as also condiments and spices.

Food price inflation in the country stood at 21.29 per cent during the corresponding period of the previous year.

Build-up of food price inflation so far during the financial year (beginning 1 April 2010) was 14.23 per cent (provisional) against 20.93 per cent (provisional) in the similar period of the previous year.

The index for the 'food articles' group rose 1.1 per cent to 187.8 (provisional) from 185.8 (provisional) in the previous week due to higher prices of chicken (up 18 per cent), condiments and spices, fruits and vegetables and moong (up 3 per cent each) and bajra and jowar (up 1 per cent each). However, the prices of fish-inland (down 4 per cent), masur and arhar (down 2 per cent each) and fish-marine and urad (down 1 per cent each) declined.

While the prices of onions and some other vegetables have come own following imports, the effect of fuel price hike - both announced and yet to be announced - is expected to stoke inflationary pressures further, say analysts.