Food inflation in India surges to 12.21%

Food inflation in India rose to 12.21 per cent during the week ended on October 22, with expensive vegetables, pulses, fruits and milk, putting more burden on the common man.Food inflation, as measured by the Wholesale Price Index (WPI), stood at 11.43 per cent in the previous week. The rate of price rise of food items stood at 13.55 per cent in the corresponding week of the previous year. As per data released by the government on Friday, vegetables became 28.89 per cent costlier on a year-on-year basis. Pulses grew costlier by 11.65 per cent, fruits by 11.63 per cent and milk by 11.73 per cent. Eggs, meat and fish also became 13.36 per cent more expensive on an annual basis, while cereal prices were up 4.13 per cent. However, onions became 20.33 cheaper. Wheat prices were also down 1.54 per cent year-on-year during the week under review. Commenting on the latest food inflation numbers, Finance Minister Pranab Mukherjee said the rise in rate of price rise was a matter of 'grave concern', but attributed this to the festive season, which led to an increase in demand. 'Inflation is still a matter of grave concern. This is also the affect of the festive season. November onward, the real trend for the remaining four months of the fiscal will be available,' he told reporters here. On a weekly basis, inflation in the overall primary articles category stood at 12.08 per cent, compared to 11.75 per cent in the previous week. Primary articles have over 20 per cent weight in the wholesale price index. Meanwhile, Finance Minister Pranab Mukherjee on Friday expressed grave concern over rising food inflation, even as he attributed the latest spike in prices to increased demand during the festive season. 'Food inflation is still going high. It is dangerously above double-digit figure,' Mukherjee told reporters here. The Finance Minister, however, said the recent spike in prices of food items was due to increased demand during the ongoing festive season. 'This (high food inflation) is the effect of festive season demand. November onwards, the trend for remaining four months (of the fiscal) would be available,' he said.