India’s food inflation accelerates to 16.9%

Inflation in the food as well as non-food groups climbed in the second week of June, while fuel group inflation remained unchanged, data released by the government showed. Stubbornly high food inflation has been a major headache for policymakers, and if prices do not show any sign of moderation in the coming days, the RBI will be forced to act ahead of its scheduled policy meet in late July. It may be recalled that WPI-based inflation shot up to 10.16% in May from 9.59% in April, while the March figure was revised to over 11% from 9.9%.



The data issued by the Commerce & Industry Ministry revealed that inflation in the Food Articles group rose to 16.90% in the week ended June 12 from 16.12% in the previous week. It was at 9.26% in the year-ago period. The index for 'Food Articles' group rose by 0.7% to 295.3. Inflation in the Primary Articles space increased to 17.60% from 16.86% in the week ended June 5, the data showed today. Inflation in this group stood at 5.61% during the corresponding week of the previous year. The index for this major group rose by 0.6% to 301.3.

Inflation in the Non-Food Articles stood at 18.86% in the week ended June 12 versus 18.25% in the previous week. Inflation in this group stood at 0.84% in the year-earlier period. The index for 'Non-Food Articles' group rose by 0.3% to 286.7. The index and rate of inflation calculated on point to point basis for the Fuel & Power group remained unchanged at their previous week’s level of 370.2 and 13.18%, the Commerce Ministry said. It was at (-)12.70% during the corresponding week of the previous year.