Food inflation jumps to 11.43%

Food inflation shot up to 11.43% for the week ended October 15 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% in the previous week.

The rate of price rise of food items was 14.20% in the corresponding week of 2010.

As per data released by the government today, vegetables became 25% costlier, year-on-year basis. Similarly, Fruits grew dearer by 11.96%, milk by 10.85% and eggs, meat and fish by 12.82%.

Pulses also became dearer by 9.06% and cereal prices were up 4.62% year-on-year.

However, onions became 18.93% cheaper. Wheat prices were also down 0.95%, and potatoes by 0.45% during the week under review.

As for weekly comparison, inflation in the overall primary articles category was 11.75% for the week ended October 15, compared to 11.18% in the previous week. Primary articles have over 20% weight in WPI.

Inflation in non-food articles, including fibres, oil seeds and minerals, was recorded at 7.67% during the week under review, as against 8.51% in the week ended October 8.

Fuel and power inflation stood at 14.70% during the week under review, compared to 15.17% 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% mark since December, 2010. It was 9.72% 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% by March 2012.