Food price inflation jumps to 16.90 per cent

The annual rate of inflation based on the wholesale price index of food articles in the country rose again to touch 16.90 during the week ended 12 June 2010 from the previous week's low of 16.12 per cent.

The spurt in inflation was due mainly to higher prices of fruits and vegetables (4 per cent), condiments and spices (3 per cent) and urad, moong and tea (1 per cent each).

Food price inflation stood at 9.26 per cent in the comparable week a year ago (week ended 13 June 2009).

The build-up of food price inflation so far during the financial year (beginning 1 April 2010), however, ended at a negative (-) 2.21 per cent against 1.84 per cent in the previous week and 3.19 per cent in the corresponding week of the previous year.

The index for the 'food articles' group rose 0.7 per cent to 295.3 (provisional) from 293.2 (provisional) in the previous week due to higher prices of fruits and vegetables (4 per cent), condiments and spices (3 per cent) and urad, moong and tea (1 per cent each). However, the prices of mutton (-2 per cent) and fish-marine and arhar (-1 per cent each) declined.

Inflation rate based on the wholesale price index of non-food articles rose to 18.86 per cent during the week ended 12 June 2010 from 18.25 per cent in the previous week confirming the Reserve Banks' fears of a wider spread of inflation. Inflation rate for the group was 0.84 per cent in the comparable week of the previous year.