New Delhi, November 3
There was no respite from rising prices for consumers as food inflation soared “dangerously’ to a nine-month high of 12.21 per cent in the week ended October 22, on the back of costlier vegetables, pulses and milk.

“Food inflation is still going high. It is dangerously above double-digit figure,” Mukherjee told reporters while commenting on the latest data, which showed food inflation rise by 0.78 percentage points during the seven-day period under review in comparison to the previous week.

Food inflation stood at 13.55 per cent in the corresponding week a year ago.

According to the data released by the government today, vegetables became 28.89 per cent costlier on a year-on-year basis, while pulses grew dearer by 11.65 per cent, fruits by 11.63 per cent and milk by 11.73 per cent.

Eggs, meat and fish also became 13.36 per cent more expensive on an annual basis, while cereal prices were up 4.13 per cent. However, onions became 20.33 per cent cheaper and wheat prices were down 1.54 per cent year-on-year during the period under review.

This was the highest rate of food inflation since the week ended January 29, when it stood at 12.94 per cent. While terming high food inflation as a matter of “grave concern”, Mukherjee said the recent spike in prices of food items was due to increased demand during the ongoing festive season.

“... This (high food inflation) is the effect of the festive season. November onward, the trend for the remaining four months (of the fiscal year) would be available,” he said.

On a weekly basis, inflation in the overall primary articles category stood at 12.08 per cent, compared to 11.75 per cent in the previous week. Primary articles have over 20 per cent weight in the wholesale price index.

Inflation in non-food articles, including fibres, oilseeds and minerals, was recorded at 6.43 per cent during the week under review, compared to 7.67 per cent in the week ended October 15.

Fuel and power inflation stood at 14.50 per cent during the week ended October 22, compared to 14.70 per cent in the previous week.

“The spike in prices of non-vegetarian protein items may be partly attributed to seasonal variations in consumption demand,” ICRA economist Aditi Nayar said.

She said the rate of price rise is expected to moderate in coming weeks. — PTI