Food inflation spikes to 9-month high

Food inflation in India accelerated further in the penultimate week of October, driven by soaring vegetable prices even as onion prices tumbled. Inflation in the fuel group declined. Data released by the government on Thursday showed that food inflation rose to 12.21% year on year for the week ended October 22, compared with 11.43% in the preceding week. Food inflation stood at 13.55% in the corresponding week last year. Inflation in the Primary Articles group increased to 12.08% in the week under review, from 11.75% in the week ended October 15, according to the Commerce Ministry statement. It was at 17.09% in the year-ago period. Inflation in the Fuel & Power group fell to 14.50% in the week ended October 22 from 14.70% in the previous week, the Government data showed. It was at 10.67% in the comparable week of the previous year. Inflation in the Non-Food Articles space declined to 6.43% in the week under review from 7.67% in the previous week, the Government data showed. It was at 25.09% in the same period a year earlier. Inflation in the Minerals group was at 21.59% in the week ended October 22, unchanged from the week ended October 15, according to the Commerce Ministry data. Inflation in this group stood at 29.09% in the year-ago period.



On an annual basis, onions turned cheaper by ~20% in the week under consideration, vegetable prices were up ~29% on an annual basis. Fruits turned costlier by ~11.6% year over year, while Milk prices increased ~11.7% and Egg, Meat & Fish became pricey by ~13.36% compared to the year-ago period. Potato prices were up ~1% on an annual basis while Cereal prices went up by ~4% year over year. Prices of Pulses jumped by ~11.65%. Annual inflation in Rice stood at ~4% while Wheat prices were fell ~1.5%. In the Non-Food category, prices of Fibres jumped by ~8.8% year-on-year while that of Oilseeds rose by 11.24% from a year ago. In Fuel category, LPG prices are up ~14.3%, petrol by ~27% and diesel by ~9.3%.