Food Inflation at a Big High

Food Inflation at a Big HighGovernment's projections for moderation in the rate of price rise of food items is really not seeing results as the food inflation has now jumped to a two-month high of 9.01% for the week ended May 28 with costlier fruits, onions and protein-based items in the region.

According to the calculations of Wholesale Price Index (WPI), food inflation was 8.06% in the last week, which was similarly high to 20.62% during the last week of May, 2010.

Though the latest figures were among the highest level of food inflation since March 26 ending week, when it stood at 9.18 % but the last two months have not cited so high figures as the rate of price rise of food items has stood below the 8 % mark.

In context to same, the government has also released a data today, according to which fruits have become 30.78% more expensive year-on-year, onions have marked growth by approx 14%, milk prices have been up by 8.49% and egg, meat and fish cited an increase of 6.99%, also cereals have become costlier by 5.77% on an annual basis. On the other hand, pulses prices went down by 9.49% year-on-year, while vegetables and potatoes became cheaper by 0.20% and 2.87%.

Also, the reports showed that the primary articles index rose for the week to 11.52% and the fuels and power prices rose 12.46%. Resulting which, the World Bank has cautioned Indian economy in a recent report, which could grow at a comparatively slower rate in the current fiscal.