Belying expectations of some respite from high prices, food inflation surged further to 17.05 per cent for the week ended January 22 from 15.57 per cent in the previous week as prices of vegetables, fruits, milk and protein-based items continued to soar.
What is particularly hurting the common man is the fact that the current inflationary bout is not just a statistical anomaly of low ‘base effect'. The price rise is for real in that the high food inflation at over 17 per cent, as per the Wholesale Price Index (WPI) data, is over and above the 20.56 per cent surge witnessed during the like week a year ago.
Finance Minister Pranab Mukherjee, who had stated at his press briefing on Wednesday that this kind of ‘periodic fluctuations' in food inflation ‘was not unusual' and there could be some more in the next three months, expressed ‘grave concern' over the latest WPI data while noting that demand and supply-side steps were being taken to moderate the price rise.Incidentally, even as the prices of vegetables, including onions, are expected to ease in the coming weeks on account of seasonal factors, prices of protein-based items such as milk, fish and eggs are likely to hold firm at higher levels. Perhaps, it was in view of this line of thinking, among other issues, that the Reserve Bank of India sought to revise its projection on headline inflation for the current fiscal to 7 per cent from 5.5 per cent estimated earlier.
Adding to the price spiral was inflation in the ‘Fuel and power' segment, which witnessed a 11.61 per cent year-on-year increase owing to the hike in petrol prices by Rs.2.50 a litre in January. What is worse, the ongoing political crisis in Egypt and other countries in the Middle East may further impact global crude oil prices which, in turn, will have a cascading effect on prices and overall inflation.
During the week, onion prices shot up by 130.41 per cent on a year-on-year basis while vegetables turned dearer by 77.05 per cent. Likewise, fruits were costlier by 15.47 per cent, egg, meat and fish by 15.05 per cent and milk by 11.41 per cent on an annual basis.
PTI reports:
The uptick in latest food inflation figure is likely to put further pressure on the government to provide relief to the common man in the coming budget. Both the government and the Reserve Bank of India have been grappling with high inflation and slowing industrial growth that dipped to the 18-month low of 2.7 per cent for November.
