In a bit data driven relief to government, India’s weekly food inflation eased to 9.47% in the week ended September 3, 2011 on-year as prices of vegetable and Egg, Meat & Fish eased in the week under consideration.
After touching the double digit figure of 10.05% in the week ended August 11, it started southward movement to 9.55% in the previous week. In the corresponding week last fiscal food inflation was at 15.16%.
Food inflation rose due to higher prices of milk, gram, arhar and fruits & vegetables (1% each). However, the prices of moong, urad, fish-inland and tea (2% each) and jowar, wheat, poultry chicken and egg (1% each) declined.
The inflation in primary article category accelerated to 13.04% in the week ended September 3, 2001 as against 13.34% in the previous week. In the corresponding week last fiscal it was 16.42%.
Price rise in non-food category is a major worry, as it accelerated to 18.49% in the week ended September 3 as against 19.88% in the week ended August 27. Last year the corresponding week it was at 16.64%. Non-food inflation picked due to higher prices of logs & timber (32%), flowers (11%), raw rubber (5%), linseed (3%), rape & mustard seed (2%).
The inflation in fuel and power group in the week under review also accelerated to 13.01% as against 12.55% in previous week. In the corresponding week last fiscal it was 11.48%.
The Reserve Bank of India (RBI), country’s central bank, hiked key policy rates 11-times since March 2010 in a measure to contain inflation.
Core inflation, based on overall wholesale price index (WPI) stood at 9.78% in month of August, much higher than the central banks comfortable range pf 5-6%. RBI in its last policy review hinted that price will remain high until October and start easing after that finally reaching 6% by March 2012.
RBI is expected to hike policy rates once again in its September review as highly politicized food inflation is a big worry at present.
- goindocalcom posted this