Annual food inflation up at 17.4%

India’s annual food inflation based on wholesale prices rose to 17.4% for the week ended January 16 from 16.81% the week before, according to official statistics released on Thursday.

Essential items continued to rule firm, with potatoes dearer by 57.56% over the past 52 weeks, pulses up 46.87%, and vegetables costlier by 10.5%. But prices of onions declined 1.69%.

The limited data on the wholesale index released by the commerce and industry ministry further showed that while the index for primary articles rose 14.66% that for fuels fell 5.28%.

India’s overall inflation rate, based on the wholesale prices index, had risen sharply to 7.31% in December from 4.78% the previous month mainly on account of increasing food prices. The food index was up 19.17%.

The price rise of some essential food items over the 52-week period are:

– Potatoes: 57.56%
– Pulses: 46.87%
– Cereals: 14.06%
– Rice: 12.60%
– Milk: 13.95%
– Wheat: 14.48%
– Vegetables: 10.5%
– Fruits: 4.17%

Finance minister Pranab Mukherjee said last week high inflation was a matter of concern and that the government was monitoring the situation, even as agriculture minister Sharad Pawar said prices of essential items would start coming down in 8-10 days.

Prime Minister Manmohan Singh is slated to discuss the issue of price rise with state chief ministers February 6. The meeting was earlier scheduled for January 27.

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