Food inflation down to 9.32 pc
Food inflation, as measured on the basis of the Wholesale Price Index (WPI), stood at 9.41 per cent in the previous week. The rate of price rise in food items stood at 17.14 per cent in the corresponding week of 2010.
The fall in food inflation could be attributed to a moderation in the rate of price rise for some of the items on a week-on-week basis, even though they remained higher on an annual basis. The fall could also be attributed to the high inflation rate of 17 per cent in the corresponding year-ago period, a phenomenon dubbed the `high base effect` in economic parlance.
As per data released by the government today, vegetable prices shot up by 13.01 per cent, with prices of potatoes rising by 3.79 per cent on an annual basis, during the week under review. In addition, milk became 10.35 per cent costlier and fruit prices rose by 12.19 per cent. Protein-based items like eggs, meat and fish also became 9.92 per cent more expensive on an annual basis. Cereals turned dearer by 5.41 per cent, rice by 5.86 per cent and pulses by 6.87 per cent annually. However, onion prices declined by 10.15 per cent on an annual basis and wheat by 0.24 per cent.
Overall, inflation in primary articles was recorded at 10.60 per cent during the week ended October 1, down from 10.84 per cent in the previous week. Primary articles account for over 20 per cent of wholesale price index inflation. Inflation in non-food articles, which include fibres, oilseeds and minerals, stood at 9.59 per cent during the week under review, compared to 10.77 per cent in the previous week.