Food inflation in India increased in the second week of September even as inflation in the Fuel group remained unchanged, data released by the Government showed on Thursday. The new data is based on a new WPI series with different base year, components and weightings.
Year-on-year inflation in the Food Articles group rose to 15.46% in the week ended Sept. 11 from 15.1% in the week ended Sept. 4,the Commerce & Industry Ministry said today. It was at 14.77% in the comparable week last year. The index for Food Articles group rose by 0.1% to 178.5 from 178.4 in the preceding week.
Inflation in the Primary Articles group rose to 16.80% in the week under review versus 16.22% in the week ended Sept. 4. It stood at 11.27% during the corresponding week of the last year. The index for the Primary Articles group rose by 0.2% to 178.7 from 178.4 in the previous week.
Annual inflation in the Fuel & Power group stood unchanged at 11.48% in the week ended Sept. 11. It was at (-)8.44% during the corresponding week of the previous year. The index for this major group remained unchanged at its previous week's level of 147.6.
On an annual basis, Cereal prices rose by 6.75% in the week under review due to higher prices of Pulses, Rice and Wheat. While prices of Pulses were up by 4.01%, that of Wheat and Rice increased by 9.21% and 5.52%, respectively.
Milk prices jumped 23.41% during the week ended Sept. 11 compared to the same period last year, while that of Fruits rose by 10.33%. Vegetables became costlier by 6.84% on an annual basis, while Potato and Onion prices were up by 48.56% and 1.97%, respectively.
Meanwhile, Chairman of the Prime Minister’s Economic Advisory Council, C. Rangarajan said today that WPI-based inflation rate is likely to fall to 5.5% by the end of the financial year in March 2011. “Our estimate is that inflation will fall to 6.5% by December and 5.5% by March,” Rangarajan said in Chennai.
Foodgrain production in the financial year 2010-11 will be 10% higher than the previous fiscal year, Rangarajan said.