Food inflation rises to 8.55% for week ended May 14

Food inflation shot up to 8.55% for the week ended May 14, the highest level in four weeks, as prices of fruits, cereals and protein-based items escalated.

Food inflation, as measured by the Wholesale Price Index (WPI), was on a declining trajectory for the previous three weeks. The figure for the seven-day period under review was 1.08 percentage points higher than the 7.47% inflation rate recorded in the previous week.

During the week ended May 14, cereals became costlier by 5.03% year-on-year and prices of onions were up by 8.32%, official data released here showed.

Prices of fruit rose by 32.37%, milk by 5.53% and eggs, meat and fish by 8.26%.

Rice also became 2.63% more expensive and potatoes 0.17% costlier on an annual basis.

Food inflation remained in double digits for most of 2010, before showing signs of moderation from March, 2011.

Prices of vegetables and pulses declined by 1.46% and 9.49%, respectively. Also, wheat became cheaper by 0.30% on an annual basis.

On an annual basis, the primary articles category saw an inflation rate of 11.60%.

On the other hand, prices of non-food primary articles were up 23.22% during the week under review. Fibres became dearer by almost 61%, while minerals were up 11.78%.

The government and Reserve Bank had said that in the months to come, inflationary pressure would be more from core (non-food) items on account of high global prices of commodities, particularly crude.