Veggies keep food inflation high
New Delhi: Even as India's annual food inflation based on wholesale prices fell to to 15.52 per cent for the week ended on January 8, high prices continued to pinch people at large with onions 100 per cent dearer over the past year and vegetables 65 per cent.
Yet, this was the second week of decline, from 16.91 per cent the week ended on January 1, after five weeks of rise that saw the food inflation surge to a 52-week high of 18.32 per cent, as per data on wholesale price index released by the commerce and industry ministry.
Much to the discomfort of industry and people, the annual inflation for primary articles continued to rule higher at 17.03 per cent, while those for fuels at 11.53 per cent and non-food articles at a 23 per cent remained a matter for grave concern.
In fact, data released on Thursday further revealed that wholesale prices of petrol is a 25 per cent higher without considering the latest hike of Rs.2.50 per litre, while that for diesel is 14.71 per cent. Both these fuels have a cascading effect on inflation.
Under attack from all sections of the society, Prime Minister Manmohan Singh on Wednesday expressed concern over high prices and assured all steps to ease this burden, but he also expressed helplessness at certain aspects that had continued to fuel inflation.
"I am not an astrologer. But I am confident that the price situation would be brought under control," he told reporters at Rashtrapati Bhavan after a cabinet reshuffle and induction of some new faces in the union council of ministers.
"There are certain factors beyond our control. But despite the problem, I am confident we will be able to bring price stability by March."
The government unveiled a series of anti-inflation steps last week, including regulation of exports and imports, sale of onions through government agencies using state-run firms to source pulses and stringent action against hoarders.
The United Progressive Alliance (UPA) government has been on the defensive after the opposition has been raking up the issue of price rise in rallies across the country, especially over onions, selling at Rs.55-60 per kg.
Post new comment