Food inflation at 12.21%, highest in 9 months
The spike in food inflation in the three weeks of October, for which data is available, is also because of a rise in demand as the month had many important festivals which raises demand.business Updated: Nov 03, 2011 12:32 IST
There seems to be no respite from rising food prices. Latest official data on Thursday for food inflation showed a sharp rise during the week ended Oct 22 at 12.21% - the highest in nine months.
Prices of pulses, vegetables and milk and poultry all rose. The week before had seen food inflation logging at 11.43%.
This is the third consecutive week food inflation has stayed in double digits.
The spike in food inflation in the three weeks of October, for which data is available, is also because of a rise in demand as the month had many important festivals which raises demand.
Overall inflation too has remained stubbornly high, near double digits, since January 2010.
The headline inflation based on the wholesale price index was recorded at 9.72% in September, according to latest official data.
To contain inflation, the Reserve Bank of India (RBI) has hiked key interest rates 13 times since early 2010, but the frequent tightening has not had much impact on soaring prices.
The central bank, in its last rate hike, said that it may not take such an action further because it expected inflation to fall from December.
In the week under review, the primary articles index, which has a 20.12% weight in the wholesale price index, rose by 12.08% during the week under review as compared to 11.75% in the previous week, according to data made available by the commerce and industry ministry.
The index of fuel and power declined marginally to 14.5%.
During the week ended Oct 15, the index for non-food articles again showed a significant decline, growing at a slower rate of 6.43% as compared to 7.67% in the previous week.
The following are the yearly rise and fall in prices under review of some main commodities that form the sub-index for food articles:
Onions: (-) 20.33%
Eggs, meat, fish: 13.36%
Wheat: (-) 1.54%
If inflation comes down as projected by March, the central bank said it could focus on offering incentives for growth.