India’s Food Inflation Reaches 17.65%

food inflationThe country's annual food inflation surged to 17.65% for the week ended April 10 as against 17.22% a week ago as rates of milk, fruits and lentils climbed up during the period under review.

Data on the wholesale price index (WPI) released by the commerce and industry ministry showed that the index for food articles got up 0.7% during the period under review.

The index for non-food articles rose 0.5%.

Considering the year as a whole, the costs of wheat, lentils, fruit, milk, cereals and non-food articles such as fibre, oil seeds and fuel were ruling higher than the levels witnessed in 2009.

But, potato, vegetables and onion turned cheaper.

The increase and decrease in costs of some essential food items over the 52-week period is given below:

- Pulses: 28.77%;
- Potato: (-)30.30%;
- Milk: 22.21%;
- Wheat: 11.18%;
- Cereals: 10.06%;
- Onion: (-)6.63%;
- Fruits: 18.81;
- Rice: 9.33%.

The Reserve Bank of India (RBI), on April 20 increased key interest rates by 25 basis points to curb inflation.

Driven by the higher food and fuel costs, the WPI moved up to 9.9% during the last month, the fastest in the last 17 months. (With Inputs from Agencies)