Food Inflation surged to 12.21 per cent for the week ended 22 October 2011

According to the WPI data released released by the Commerce and Industry Ministry on 3 November 2011, food inflation surged further to 12.21 per cent for the week ended 22 October  2011 from 11.43 per cent in the previous week owing to soaring prices of various edibles such as vegetables, fruits, pulses, milk and all other protein-rich items.

 
The double-digit food inflation was attributed to risingprices of tomato and protein-based items due to supply shortage that aggravated amid surging demand during the festival season. Tomato prices went up by 88 per cent during the week on the top of a 55 per cent rise in the previous week.

Prices of vegetables during the week  ended 22 October 2011 were higher by 28.89 per cent on a year-on-year basis while pulses turned dearer by 11.65 per cent, fruits by 11.63 per cent and milk by 11.73 per cent. Alongside, eggs, meat and fish were also more expensive by 13.36 per cent while prices of even cereals were 4.13 higher on a yearly basis. The only edibles that turned cheaper as compared to last year were onions by 20.33 per cent and wheat by 1.54 per cent, which provided hardly any relief to the common man.

Demand for vegetables, milk, egg, meat and fish shot up in recent times due to rising incomes and changing dietary preferences. But despite promises of improving supplies, the situation on the ground has remained unchanged.

The index for food articles group rose by 0.7% to 202.2 from 200.8 due to higher prices for river fish (9%), chicken and sea fish (4% each), egg, condiments & spices and ragi (2% each) and gram, tea and bajra (1% each).

The Reserve Bank of India (RBI) raised interest rates 13 times since March 2010 to tame inflation.