Food inflation jumps over 11 percent

New Delhi: Food inflation shot up to 11.43 per cent for the week ended 15 October on the back of costlier vegetables, fruits, milk and protein-based items. Food inflation, as measured by Wholesale Price Index (WPI), stood at 10.60 percent in the previous week. The rate of price rise of food items was 14.20 percent in the corresponding week of 2010. As per data released by the government today, vegetables became 25 percent costlier, year-on-year basis. Similarly, Fruits grew dearer by 11.96 per cent, milk by 10.85 percent and eggs, meat and fish by 12.82 per cent. [caption id=“attachment_117567” align=“alignleft” width=“380” caption=“Fruits grew dearer by 11.96 per cent, milk by 10.85 per cent and eggs, meat and fish by 12.82 per cent.”]  [/caption] Pulses also became dearer by 9.06 percent and cereal prices were up 4.62 percent year-on-year. However, onions became 18.93 cheaper. Wheat prices were also down 0.95, and potatoes by 0.45 percent during the week under review. As for weekly comparison, inflation in the overall primary articles category was 11.75 percent for the week ended 15 October, compared to 11.18 percent in the previous week. Primary articles have over 20 percent weight in WPI. Inflation in non-food articles, including fibres, oil seeds and minerals, was recorded at 7.67 percent during the week under review, as against 8.51 percent in the week ended 8 October. Fuel and power inflation stood at 14.70 percent during the week under review, compared to 15.17 percent in the previous week. The upsurge in food prices is likely to exert further pressure on the government and the Reserve Bank to tackle the situation expeditiously. Headline inflation, which also factors in manufactured items, has been above the 9 percent mark since December, 2010. It was 9.72 percent in September this year. RBI has hiked interest rates 13 times since March, 2010, to tame demand and curb inflation. In its second quarterly review of the monetary policy earlier this week, the apex bank said it expects inflation to remain elevated till December on account of demand-supply mismatch, before moderating to 7 percent by March 2012. PTI