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Updated: November 12, 2009 15:49 IST

Potato, onion push up food inflation to 13.68 p.c.

PTI
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Potatos being stored in a wholesale market in Guwahati. A file photo: Ritu Raj Konwar
Potatos being stored in a wholesale market in Guwahati. A file photo: Ritu Raj Konwar

Higher prices of staple vegetables such as onion and potato pushed food inflation higher to 13.68 per cent in the last week of October.

On an annual basis, prices of potato have doubled during the one-year period ending October 31, 2009, while onions were expensive by 42.58 per cent.

High food prices also pushed up inflation of primary articles (items that are not processed) by 9.16 per cent.

Pulses were also dearer by 22.73 per cent.

The government will release the monthly data on wholesale prices-based inflation, which would reflect price movement in manufacturing, on November 14.

According to Planning Commission Deputy Chairman Montek Singh Ahulwalia, “Food price inflation by the end of the current fiscal would be significantly lower than what it is right now.” Food inflation was 13.39 per cent the previous week.

Prices of vegetables are expected to ease in the coming months, Mr. Ahluwalia added.

Crisil Principal Economist D K Joshi too said that pressure on food prices would continue for some more time before starting to ease on news of Rabi crop.

The other items, which recorded over 10 per cent increase in prices are rice (16.63 per cent) and milk (10.3 per cent).

On the other hand, non-food items, which include fibre, oil seeds and minerals, declined by 0.17 per cent. Also the index of fuel, power, light and lubricants decreased by 1.71 per cent.

Prices of light diesel oil, which fell by 3 per cent and naphtha and furnace oil by 2 per cent each during the week.

At the same time, prices of bajra increased 3 per cent, fruit and vegetables 2 per cent and jowar, wheat and arhar by one per cent each during the week under review.

However, the prices of fish-marine declined by 3 per cent and tea by 1 per cent.

Among non-food articles, fodder prices increased by 7 per cent, groundnut seed 2 per cent and raw cotton by 1 per cent.

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