Even as food inflation eased to 15.52 per cent for the week ended January 8 from 16.91 per cent in the previous week, the second straight week's decline brought no cheer either to the government or the ‘aam admi' as vegetable prices continued to rule at the higher levels.
Although the Wholesale Price Index (WPI) based data on primary articles released here on Thursday reveals a decline in food inflation by 1.39 percentage points as compared to a week ago, rising prices continue to be the government's major worry as the impact of the recent hike in petrol prices is yet to be factored in. In effect, the inflation index for fuels and food may inch up again in the coming weeks.
'Not much consolation'
Commenting on the weekly WPI data, Finance Minister Pranab Mukherjee said: “These are weekly fluctuation[s] and naturally we shall have to watch the situation. Some of the vegetable prices are still high. The fact of the matter is from 16.91 per cent it, has come down to 15.52 per cent. Though it is not much consolation, but declining trend is there…We shall have to watch the situation. All necessary effective steps are being taken, including improving of supply management.''
The runaway increase in vegetable prices, especially onions, food inflation surged to the year's high in December and has remained way above the comfort levels. In its bid to tame inflation, the Centre asked the states to do their bit in this battle by removing local levies and supply chain bottlenecks.
During the week, vegetable prices continued to surge and remained 65.39 per cent higher while onion prices doubled on a year-on-year basis.
Making matters worse for consumers, fruits turned dearer by 15.91 per cent and while milk prices went up by 13.27 per cent, egg, meat and fish were 12.94 per cent costlier on an annual basis. Food items which witnessed decline in prices were pulses by 14.92 per cent, wheat by 6.11 per cent and potatoes by 2.91 per cent on a yearly basis.
Going by the trend, economic analysts expect food inflation to decline to single digit by the middle of February.
