Food inflation dips, but fuel inflation jumps

Food inflation in India dropped further in the penultimate week of last month owing largely to high base effect but fuel prices surged after the Government decided to decontrol petrol prices and hiked prices of other petroleum products. Mineral prices also jumped in the week ended June 26, government data showed.



India’s food inflation declined to 12.63% in the week ended June 26 from 12.92% in the preceding week. Inflation in the Food Articles group stood at 12.21% in the corresponding period last year. The index for 'Food Articles' group declined by 0.1% to 296.0. However, inflation in the Fuel & Power group shot up to 18.02% in the week ended June 26 from 12.90% in the week ended June 19. Inflation in this group stood at (-) 12.42% during the corresponding week of the previous year. The index for this major group rose by a whopping 4.5% to 387.0 from 370.2.

Inflation in the Primary Articles group also climbed in the week under review to 16.08% from 14.75% in the previous week. The annual rate of inflation, calculated on point to point basis, for this group stood at 6.85% during the week ended June 27, 2009. The index for this major group rose by 1.4% to 306.0 from 301.8 in the previous week. Inflation in the Non-Food Articles group inched lower to 18.60% in the week ended June 26 from 18.80% in the week before. Inflation in this group was at -1.79% in the week ended June 27, 2009. The index for this group rose by 0.2% to 287.0.

Inflation in the Minerals group shot up to 53.47% in the week ended June 26 from 20.15% in the previous week. Inflation for this group stood at (-) 12.73% in the corresponding week of last year. The index for Minerals group rose by 28.3% to 866.2 from 674.9 in the previous week.