Food Inflation eased to 9.03 per cent for the Week ended 6 August 2011

According to the WPI (wholesale price index) data released on 18 August 2011, food inflation eased to 9.03 per cent for the week ended 6 August 2011 from 9.90 per cent in the previous week even as prices of all edibles, barring pulses, continued to rise.

The marginal easing could also be attributed to a week-on-week moderation in inflation even as prices continued to move up. For instance, the rate of price rise during the week ended July 30 in items such as vegetables, potatoes, milk, egg, meat and fish was higher on an annual basis compared to the first week of August.
The inflation data for the week under supervision showed that except pulses which turned 5.63 per cent cheaper on a year-on-year basis, onion prices were up 37.62 per cent as were fruits by 26.46 per cent. Eggs, meat and fish were more expensive by 9.93 per cent, so was milk by 9.76 per cent. Cereals and vegetables were also dearer by 6.23 per cent and 2.59 per cent, respectively.

The economic analysts pointed out that the volatile trend in food inflation is likely to continue. Food inflation was at over 14 per cent during the week ended 6 August 2010.

Overall, however, while inflation in primary articles stood pegged lower at 11.64 per cent against 12.22 per cent in the previous week, inflation in non-food articles rose to 16.07 per cent from 15.05 per cent earlier.
Inflation in fuel and power was also higher at 13.13 per cent for the week ended 6 August against 12.19 per cent a week ago.