Supply disruption drives food inflation to 16.44%

Food inflation increased to 16.44 per cent in the week ended September 18 as the cost of cereals, fruits, select vegetables and milk rose on account of supply disruptions due to heavy rains and floods.

Week-on-week, food inflation climbed 0.98 percentage points from 15.46 per cent in the week ended September 11.

This was the fifth consecutive week in which the rate of food prices has risen, after a spell of moderation in July and the first half of August.

An unusually heavy spell of late monsoon showers had resulted in severe flooding across many states, including Delhi, Haryana, Punjab, Uttar Pradesh, Uttarakhand, Himachal Pradesh and Rajasthan, resulting in disruption of supplies.

On an annual basis, cereals prices rose by 6.11 per cent, driven mainly by higher

Among other food items, milk prices soared by 24.32 per cent during the week compared to the same period last year, while fruit rates rose by 15.13 per cent.

Vegetables also became dearer by 5.87 per cent on an annual basis. Onion prices went up by 1.39 per cent year-on-year, but potato prices declined by 50.48 per cent, continuing the trend of the last few months.