Food price inflation rate climbs back to 11.40 per cent

The annual rate of inflation based on the wholesale price index of food articles in the country ended a declining trend and bounced back to a double-digit figure of 11.40 per cent (provisional) during the week ended 31 July 2010 from 9.53 per cent (provisional) in the previous week.

The spike in inflation rate was due mainly to a rise in the prices of coffee (3 per cent), tea (2 per cent) and condiments and spices (1 per cent).

Food price inflation stood at 12.77 per cent in the comparable week a year ago (week ended 1 August 2009).

Build-up of food price inflation so far during the financial year (beginning 1 April 2010) was 3.54 per cent (provisional) during the week ended 31 July 2010 against 3.75 per cent (provisional) in the previous week. It was 9.63 per cent in the corresponding week of the previous year.

The index for the 'food articles' group declined 0.2 per cent to 298.1 (provisional) from 298.7 (provisional) in the previous week due to lower prices of fruits and vegetables, arhar, fish-marine, masur and bajra (-1 per cent each). However, the prices of coffee (3 per cent), tea (2 per cent) and condiments and spices (1 per cent) moved up.

Inflation rate based on the wholesale price index of non-food articles also rose further to 21.79 per cent (provisional) during the week ended 31 July 2010 from 21.28 per cent (provisional) in the previous week. Inflation rate for the group stood at a negative (-) 4.31 per cent in the comparable week of the previous year.