Food price inflation shoots up to 17.70 per cent

The annual rate of inflation based on the wholesale price index of food articles shot up to 17.70 per cent during the week ended 27 March 2010 from 16.35 per cent during the previous week.

The spurt, due mainly to higher prices of milk, fruits and pulses, is expected to prod Reserve Bank to further tightening rates in its annual monetary policy on 20 April.

Food price inflation stood at 6.97 per cent in the comparable week a year ago (week ended 28 March 2009).

The build-up of food price inflation so far during the financial year (beginning 1 April 2010) also stood at 17.70 per cent against 6.97 per cent during the comparable period of the previous year.
 
The index for the 'food articles' group rose 0.9 per cent to 287.3 (provisional) from 284.7 (provisional) in the previous week, due to higher prices of fish-marine (4 per cent), jowar and milk (2 per cent each) and fruits and vegetables, masur, bajra and ragi (1 per cent each). However, the prices of condiments and spices and eggs (-1 per cent each) declined.

The inflation rate based on the wholesale price index of non-food articles for the week ended 20 March 2010 stood at 11.56 per cent against 12.57 per cent during the previous week and 0.13 per cent in the comparable week of the previous year.

Built-up inflation for the `non-food articles' group during the financial year so far was 11.56 per cent against -0.57 per cent in the previous week and 0.13 per cent in the comparable week of the previous financial year.