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Food inflation shows upward trend
27 May 2011: Food inflation showed a sharp uptrend, mainly on account of a continuing surge in year-on-year prices levels for items such as vegetables, fruits and poultry items.
Based on the annual WPI, food inflation rose 8.55 per cent in the week ended May 14, sharply higher than the previous week's annual rise of 7.47 per cent, Government data showed on 26 May 2011.
The fuel index remained unchanged at
the previous week's level of 12.11 per cent.
Sequentially, vegetables and poultry items reflected a sharp increase in price
levels during the latest reported week. The Food Index was up 0.6 per cent to
186.7 week-on-week, mainly on account of the sharp uptrend seen in vegetables
and poultry items.
Eggs, meat and fish were up about eight per cent that the previous year's levels, the data showed. Rising non-food inflation is also adding to overall price pressures, which rose 23 per cent on a year-on-year basis, driven by a 60 per cent jump in fibres.
The weekly food inflation has slowed from the double-digit rise for much of 2010, but headline inflation at 8.66 per cent in April remains well above the RBI's comfort level, which could result in more rates hikes in the coming months.
Source: Hindu Business Line