India\’s food inflation rate falls to 12.92 %

Thu, 07/01/2010 – in Business & Economy
NetIndian News Network
New Delhi, July 1, 2010

The high prices of food items were a cause of worry for the Government since the worst monsoon in more than three decades last year and floods in some states adversely affected the Kharif crop.

According to the figures released today, the prices of pulses were up 31.57 per cent from a year ago, milk by 15.91 per cent, fruits by 8.74 per cent, cereals by 5.36 per cent, rice by 6.44 per cent, wheat 4.49 per cent and vegetables by 1.17 per cent.

The prices of potatoes were down by 39.61 per cent and onions by 7.36 per cent, the statement said.

Overall, the annual rate of inflation for Primary Articles, which have a weight of 22.02 per cent in the Wholesale Price Index (WPI), stood at 14.75 per cent for the week ended June 19 as compared to 17.60 per cent for the previous week and 7.57 per cent during the corresponding week of the previous year.

The index for this major group rose by 0.2 percent to 301.8 from 301.3 for the previous week, the provisional figures showed.

Within this group, the index for Food Articles rose by 0.3 percent to 296.3 from 295.3 for the previous week due to higher prices of fruits & vegetables (2%) and maize and urad (1% each).  However, the prices of bajra (6%), coffee (3%) and moong and gram (1% each) declined.

The index for Non-Food Articles declined by 0.1 percent to 286.3 from 286.7 for the previous week due to lower prices of sunflower (3%) and raw cotton and linseed (1% each).  However, the prices of raw rubber, raw silk and castor seed (1% each) moved up.

The index for Fuel, Power, Light & Lubricants, which have a weight of 14.23 per cent in the WPI, remained unchanged at its previous week’s level of 370.2.  The annual rate of inflation for this category stood at 12.90 percent for the week ended June 19 as compared to 13.18 percent for the previous week and (-) 12.42 percent during the corresponding week of the previous year. NNN