Food inflation rises to 16.9%

Annual food inflation rose to 16.90 per cent for the week ended June 12 on high prices of pulses, vegetables and milk.

The annual rate of price rise of food items in the previous week was 16.12 per cent. Prices of pulses for the week were higher by 34.14 per cent over the corresponding week last year, while that of milk rose by 21.12 per cent on an annual basis.

However, prices of potato and onion were down by 36.99 per cent and 22.42 per cent respectively. On weekly basis, prices of vegetables rose by 8.06 per cent, that of condiments and spices by 3 per cent.

Urad, moong and tea became expensive by 1 per cent each over the previous week. However, mutton price was down 2 per cent, and sea fish and arhar was cheaper 1 per cent each over the week.

High food inflation is primarily driving up the overall inflation, which entered double digits (10.16 per cent) in May, according to provisional figures.

Also, final figures for March showed that inflation was 11.04 per cent against 9.9 per cent projected earlier.

Prices of edibles had started rising last year and peaked to over 20 per cent in December 2009 after food production was hit by poor monsoon that accounts for 80 per cent of the annual rains the country receives.

Nearly 60 per cent of area under cultivation is rain fed.

The weather office has predicted near normal monsoon this year, although it has been slow to advance since hitting the Indian coast in late May.