Food inflation surges to 12.21% for week ended October 22

Food inflation rose to 12.21% during the week ended October 22, with expensive vegetables, pulses, fruits and milk, putting more burden on the common man. Food inflation, as measured by the Wholesale Price Index (WPI), stood at 11.43% in the previous week.

The rate of price rise of food items stood at 13.55% in the corresponding week of the previous year. As per data released by the government today, vegetables became 28.89% costlier on a year-on-year basis. Pulses grew costlier by 11.65%, fruits by 11.63% and milk by 11.73% . Eggs, meat and fish also became 13.36% more expensive on an annual basis, while cereal prices were up 4.13%. However, onions became 20.33 cheaper.

Wheat prices were also down 1.54% year-on-year during the week under review. Commenting on the latest food inflation numbers, Finance Minister Pranab Mukherjee said the rise in rate of price rise was a matter of "grave concern", but attributed this to the festive season, which led to an increase in demand.

"Inflation is still a matter of grave concern. This is also the affect of the festive season. November onward, the real trend for the remaining four months of the fiscal will be available," he told reporters. On a weekly basis, inflation in the overall primary articles category stood at 12.08%, compared to 11.75% in the previous week. Primary articles have over 20% weight in the wholesale price index.

Source: www.moneycontrol.com

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Gaurav Agarwal
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DENIP Consultants Pvt Ltd