India’s Weekly Food Inflation Accelerates to 11.43% on Year

 In a respite to Indian government food inflation in the week ended October 29 eased marginally to 11.43% on year on the back of lower prices of egg, meat & fish, data released by the Ministry of Commerce and Trade showed Thursday. 

In the previous week food inflation was at 12.26% and in the corresponding week last fiscal it was at 12.68%.

Food inflation in the week eased due lower prices of fish-inland (3%), bajra (2%) and fruits & vegetables, moong and condiments & spices (1% each). However, the prices of gram, egg, fish-marine, ragi and poultry chicken increased 2% each.

Reserve Bank of India (RBI), the central bank of country, in a move to control inflation hiked key policy rates 13-times by 375 basis points since March 2010 as headline inflation remained above the comfort zone of 5-6% in the period.

The apex bank in its last credit policy review, announced on October 25, expressed hope that headline inflation will start coming down from December onwards and by March 2012 it will reach the targeted 7% inflation.

The non-food inflation in the week ended October 29 marginally eased to 6.41%, whereas it was at 6.43% in the previous week. In the corresponding week last fiscal it was at 24.29%. It rose due to higher prices of flowers (7%), gaur seed (4%), rape & mustard seed (2%) and sunflower, raw rubber and raw jute (1% each).  

The fuel and power inflation in the reporting week accelerated to 14.50%, same as previous week. In the corresponding week last fiscal it was at 10.67%. Fuel inflation is expected to go up in coming weeks as oil marketing companies hike petrol prices by Rs 1.82 per litre to reduce the under-recovery burden. 

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