Food inflation entered the double-digit number after a gap of five months, at 10.05 per cent for the week ended August 20. Food inflation, as measured by the Wholesale Price Index (WPI), was 9.80 per cent in the previous week. The rate of price rise of food items was over 15 per cent during the same week last year. As per the official data released today, prices of onion soared by 57.01 per cent year-on-year, while that of potato by 13.31 per cent during the week under review. Fruits became dearer by 21.58 per cent and vegetables overall by 15.78 on an annual basis. However, pulses became cheaper by 4.16 per cent and wheat by 2.52 per cent year-on-year. The Chairman of the Prime Minister's Economic Advisory Council Dr. C. Rangarajan on Thursday said that food inflation will come down to comfortable levels as the country had a good monsoon. Talking to reporters on the sidelines of a function in New Delhi, he said the government may release foodgrains to check this inflation immediately. He, however, said that this is a temporary phenomenon due to reasons like truckers strike in some parts of the country. In response to a question he said that growing subsidies result in deficit and the government may revise the prices of diesel to address this issue. Dr. Rangarajan said that the country will clock around 8.2 percent growth this fiscal. He said they expected the growth in the first quarter is as per the estimates and it will increase in the last two quarters of the current financial year.
News On AIR | September 1, 2011 1:14 PM
Food inflation rate touches 10.05 per cent for week ended on August 20