Food price inflation soars to 19.05 per cent

The annual rate of inflation based on the wholesale price index of food articles (base: 1993-94=100) increased to 19.05 per cent for the week ended 28 November 2009 from 17.47 per cent in the previous week. Food price inflation stood at 10.48 per cent in the comparable week a year ago (week ended 29 November 2008).

The spike in inflation rate has been helped by a 41 per cent year-on-year rise in the prices of wheat, a 32 per cent rise in the prices of vegetables, a 102.19 per cent rise in the prices of potatoes and a 23 per cent rise in onion prices.

The index for the 'food articles' group rose 0.7 per cent to 291.2 (provisional) from 289.2 (provisional) for the previous week due to higher prices of moong, condiments and spices and arhar (3 per cent each), fish-inland and masur (2 per cent each) and gram, wheat, tea, fruits and vegetables and rice (1 per cent each). However, the prices of maize and bajra (-1 per cent each) declined.

The point-to-point inflation rate for the larger group of `primary articles' stood at 13.90 per cent (provisional) for the week ended 28 November 2009 against 12.53 per cent (provisional) in the previous week and 11.57 per cent during the corresponding week of the previous year (ended 29 November 2008).

The wholesale price index for the larger group of `primary articles' (weight 22.02 per cent) rose 0.9 per cent to 284.4 (provisional) from 281.9 (provisional) in the previous week.

The index for the 'non-food articles' group rose 1.7 per cent to 243.5 (provisional) from 239.5 (provisional) in the previous week due to higher prices of raw rubber (13 per cent), groundnut seed and castor seed (5 per cent each), copra (2 per cent) and linseed, raw cotton and gingelly seed (1 per cent each). However, the prices of tobacco (-2 per cent) declined.

The index for the `fuel, power, light and lubricants' group (weight 14.23 per cent) remained unchanged at its previous week's level of 345.0 (provisional).

The annual rate of inflation for the `fuel, power, light and lubricants' group stood at 0.06 per cent (provisional) against 0.00 per cent (provisional) for the previous week and 4.42 per cent during the corresponding week of the previous year.