Food inflation rises 9.03%

India’s food price index rose 9.03% and the fuel price index climbed 13.13% for the week ended 6 August, government data on Thursday showed.

Finance minister Pranab Mukherjee termed the over 9% rate of food inflation as “not acceptable”, but expressed hope that government policies and a good monsoon will help ease prices.

“Food inflation at the level of 9% is not acceptable. I do hope the measures taken to remove supply constraints in some of the agricultural commodities and good monsoon will help to have further moderating influence on the prices of food and other essential commodities,” Mukherjee told reporters here.

Data released by government on Thursday showed pulses became cheaper by 5.63% year-on-year during the week. However, all other items continued to remain expensive.

 

Experts expect food prices to remain volatile for a while.

“On a weekly basis, the rate of food inflation would remain volatile, mainly led by prices of perishable items like fruits and vegetables, which have a heightened sensitivity to short-term supply disturbances,” ICRA economist Aditi Nayar said.

Food and fuel inflation stood at 9.90% and 12.19%, respectively, in the previous week.

Reserve Bank of India deputy governor Subir Gokarn on Thursday said that high inflation, even with high growth, is not conducive to investment and corporate performance.

Reuters contributed to this story.