Food inflation crosses 15% on costlier cereals and milk
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Food inflation reached 15.10 per cent for the week ended September 4 as cereals, select vegetables and milk became costlier after rains disrupted the supplies.
This figure, though not exactly comparable to the previous week's 11.47 per cent because it is calculated on the new series with 2004-05 as the base year, justified the RBI's move to raise its short term lending and borrowing rates at the monetary policy review today.
This is the third consecutive week when food inflation has shown an upward trend, after a brief period of moderation in July and first half of August. On yearly basis, cereals prices rose by 7.16 per cent driven mainly by higher prices of pulses, rice and wheat, compared to the same period in 2009.
While pulses became dearer by 6.10 per cent, prices of rice and wheat rose by 5.74 per cent and 10.16 per cent, respectively, during the week under review, on yearly basis.
Among other food items, milk prices soared by 23.41 per cent during the week compared to the same period in 2009, while that of fruits went up by 8.27 per cent. Vegetables also became dearer by 3.82 per cent on an annual basis, while potato and onions became cheaper by 45.92 and 4.17 per cent.
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