Food price inflation nears 20 per cent

The annual rate of inflation based on the wholesale price index of food articles (base: 1993-94=100) increased to 19.95 per cent for the week ended 5 December 2009 from 19.09 per cent in the previous week. Food price inflation stood at 10.28 per cent in the comparable week a year ago (week ended 6 December 2008).

The index for the 'food articles' group rose 0.3 per cent to  292.2 (provisional) from 291.2 (provisional) for the previous week due to higher prices of urad and condiments and spices (3 per cent each), milk (2 per cent) and maize, barley,  pork, masur and wheat (1 per cent each). However, the prices of poultry chicken (-10 per cent), fish-inland (-7 per cent) and tea (-2 per cent) declined.

The inflation rate for the primary articles group, which also includes the food articles group, stood at 14.98 per cent (provisional) during the week ended 5 December 2009 against 13.90 per cent (provisional) for the previous week and 11.50 per cent during the corresponding week of the previous year (ended 6 December 2008).

The index for the primary articles group as a whole rose 0.4 per cent to 285.5 (provisional) from 284.4 (provisional) for the previous week.

The index for the 'non-food articles' group rose 0.5 per cent to 244.8 (provisional) from 243.5 (provisional) in the previous week due to higher prices of raw jute (11 per cent), rape and mustard seed (4 per cent) and castor seed and copra (1 per cent each). However, the prices of niger seed (-3 per cent) and raw silk (-2 per cent) declined.

The index for the `fuel, power, light and lubricants' group declined marginally to 344.9 (provisional) from 345.0 (provisional) in the previous week due to lower prices of aviation turbine fuel (-1 per cent).

The annual rate of inflation stood at 3.95 per cent (provisional) for the week ended 5 December 2009 against 0.06 per cent (provisional) in the previous week (ended 28 November 2009) and 0.48 per cent during the corresponding week of the previous year (ended 6 December 2008).