Business & Economy

India's food inflation rate rises to 16.90 %

NetIndian News Network

New Delhi, June 24, 2010

India's food inflation rate rose to 16.90 per cent in the year to June 12 from 16.12 per cent in the previous week, while fuel prices remained steady at 13.18 per cent up from a year ago, an official statement said here today, quoting provisional data.

The continued high prices of food items have been a cause of worry for the Government since the worst monsoon in more than three decades last year and floods in some states adversely affected the Kharif crop.

According to the figures released today, the prices of pulses were up by 34.14 per cent from a year ago, milk by 21.12 per cent, fruits by 13.55 per cent, rice by 6.45 per cent, cereals by 5.11 per cent, wheat by 4.21 per cent and vegetables by 4.32 per cent.

However, the prices of potatoes were down by 36.99 per cent and onions by 22.42 per cent, the statement said.

Overall, the annual rate of inflation for Primary Articles, which have a weight of 22.02 per cent in the Wholesale Price Index (WPI), stood at 17.60 per cent for the week ended June 12 as compared to 16.86 per cent for the previous week and 5.61 per cent during the corresponding week, ended June 13, 2009, of the previous year.

The index for this major group rose by 0.6 per cent to 301.3 from 299.5 for the previous week, the provisional data showed.

Within this group, the index for Food Articles group rose by 0.7 per cent to 295.3 from 293.2  for the previous week due to higher prices of fruits & vegetables (4%), condiments & spices (3%) and urad, moong and tea (1% each).  However, the prices of mutton (2%) and fish-marine and arhar (1% each) declined.

The index for Non-Food Articles rose by 0.3 per cent to 286.7 from 285.8 for the previous week due to higher prices of gingelly seed, raw silk and castor seed (2% each) and  sunflower, copra, linseed, groundnut seed and logs & timber (1% each).

The index for Fuel, Power, Light & Lubricants, which have a weight of 14.23 per cent in the WPI, remained unchanged at its previous week's level of 370.2. The rate of inflation for this group also remained unchanged at 13.18 per cent, the statement added.