Food inflation at 8.69 %
A week after declining to an 18-months low, food inflation rose again, albeit marginally, to 8.69 % for the week ended November 27 on back of rise in prices of rice, onions, fruits and milk.business Updated: Dec 09, 2010 12:36 IST
A week after declining to an 18-months low, food inflation rose again, albeit marginally, to 8.69 % for the week ended November 27 on back of rise in prices of rice, onions, fruits and milk.
Food inflation in the previous week stood at 8.60 %, which was the lowest since May last year.
The upward trend in food inflation also marked a break of seven consecutive weeks of fall in food prices.
Food inflation during the corresponding week of last year was 20.24 %.
During the week under review, rice became costlier by 1.60 % on an annual basis, according to the government data released on Thursday.
Cereals overall also became dearer by 0.66 %, while food items like egg, meat and fish rose by 16.16 % year-on-year.
In vegetables segment, onions were expensive by 25.48 %.
On a year-on-year basis, fruits and milk became costlier by 18.31 % and 17.76 % respectively.
However, wheat prices went down by 3 % on an annual basis.
While pulses fell by 10.91 %, vegetables became cheaper by 3.42 % largely aided by a sharp dip in potato prices that came down by as much as 45.40 % on an annual basis.
The sudden rise in food inflation, after a record fall, is likely to be a cause of worry for the government which was looking at a decline in the overall inflation to 6 per cent by March next year.
Overall inflation, which also takes account of manufactured goods, primary articles and fuels, was 8.58 per cent in October.
The data for November is expected next week.
Chief Economic Advisor Kaushik Basu earlier this week said that overall inflation is likely to decline to around 7.5 per cent in November.