Food inflation jumps...Back above 9%

The annual rate of inflation in the food space increased in the fourth week of May and climbed back above the 9% mark, data released by the Government showed. Inflation in the Fuel & Power space inched lower during the week under review, the data revealed. Annual inflation in the Food Articles space rose to 9.01% in the week ended May 28 from 8.06% in the previous week, the Commerce & Industry Ministry said in a statement. With this, food inflation has remained under the much-dreaded double digit mark for the 11th straight week. Food inflation was at 20.62% in the year-ago period.



Inflation in the Primary Articles group increased to 11.52% in the week under consideration from 10.87% in the week ended May 21, according to the Commerce Ministry statement. Inflation in the Primary Articles space was at 20.25% in the comparable period last year. Inflation in the Fuel & Power group fell to 12.46% in the week ended May 28 from 12.54% in the week ended May 21, the Government data showed. Inflation in the Fuel & Power space was at 14.32% in the week ended May 29, 2010.

Inflation in the Non-Food Articles space decreased to 20.97% in the week under review from 21.31% in the week ended May 21. It was at 15.14% in the same period a year earlier. Inflation in the Minerals group rose to 12.11% in the week ended May 28 from 11.78% in the previous week. Inflation in this group stood at 27.51% in the corresponding period of last year.

On an annual basis, onions turned costlier by ~14% in the week under consideration, while on a week-on-week basis, they were up by 2%. Vegetable prices were steady on an annual basis, while on a weekly basis they were more or less flat.

Fruits turned costlier by ~30.78% year over year, while milk prices increased by ~8.5% on an annual basis during the week under review. Egg, Meat & Fish became pricey by ~7% compared to the year-ago period.

Potato prices were down ~3% on an annual basis while Cereal prices went up by ~5.8% year over year. Prices of pulses fell by ~9.5%. Annual inflation in Rice stood at 2.7% while wheat prices remained steady.