Food inflation added anxiety
The WPI for primary articles the week ended 20 February 2010 declined by 0.3 % to 283.7 from 284.5 last weekThe annual rate of inflation, calculated on point to point basis, stood at 15.00 % for the week ended 20 February 2010 compared 5.65 % during the corresponding week ended 21 February 2009.
The index for 'Food Articles' group declined by 0.4 % to 285.0 from 286.2 for the previous week due to lower prices of fruits & vegetables, gram and barley (3% each), condiments &spices (2%) and tea, wheat, eggs and arhar (1% each). However, the prices of fish-marine (3%) and fishinland and milk (1% each) moved up.
The index for 'Non-Food Articles' group rose by 0.1 % to 256.2 from 256.0 for the previous week due to higher prices of raw jute and raw rubber (4% each). However, the prices of castor seed, mesta and groundnut seed (1% each) declined.
The index for fuel and power this major group declined marginally to 355.4 from 355.5 for the previous week due to lower prices of aviation turbine fuel (3%).The annual rate of inflation, calculated on point to point basis stood at 9.59 % for the week ended 20 February 2010.
Food prices are cyclical in nature. A sharp increase in food prices during the recent period has been a cause of concern. The concentrated pressure on headline inflation arising from high food prices.
