Indian Food Inflation Rises

NEW DELHI, November 3, 2011: Food inflation rose to 12.21 per cent during the week ended October 22, with expensive vegetables, pulses, fruits and milk, putting more burden on the common man.

Food inflation, as measured by the Wholesale Price Index (WPI), stood at 11.43 per cent in the previous week. The rate of price rise of food items stood at 13.55 per cent in the corresponding week of the previous year.

As per data released by the government today, vegetables became 28.89 per cent costlier on a year-on-year basis. Pulses grew costlier by 11.65 per cent, fruits by 11.63 per cent and milk by 11.73 per cent. Eggs, meat and fish also became 13.36 per cent more expensive on an annual basis, while cereal prices were up 4.13 per cent. However, onions became 20.33 cheaper. Wheat prices were also down 1.54 per cent year-on-year during the week under review.

On a weekly basis, inflation in the overall primary articles category stood at 12.08 per cent, compared to 11.75 per cent in the previous week. Primary articles have over 20 per cent weight in the wholesale price index. Inflation in non-food articles, including fibres, oil seeds and minerals, was recorded at 6.43 per cent during the week under review, as against 7.67 per cent in the week ended October 15. Fuel and power inflation stood at 14.50 per cent during the week ended October 22, compared to 14.70 per cent in the previous week.

The upsurge in food prices is likely to exert further pressure on the government and the Reserve Bank to tackle the situation expeditiously. The RBI has hiked interest rates 13 times since March, 2010, to tame demand and curb inflation.

With a love at first sight syndrome, Indians embraced Capitalism and ditched Nehruvian Socialistic Pattern of Society. The poor were marginalized, and glorification of the rich started, with the media in the vanguard. Now the hue and cry for the common man, is it mere crocodile tears, or is it a populist campaign in preparation for election season ? It is well known that the power of lobbyists is enormous on political life. Here we are talking of wholesalers, who are a niche community, and to target them to get funds is easy. Wonder if any one remembers the day, when tomatoes suddenly were sold at 40 rupees a kilo, during the BJP NDA tenure ? Ever since. we speak of food inflation. A new generation has replaced the old. Who is the main culprit ? No one wants to find out. All they hanker about is to get rid of the current government, and replace it with what ? Look before you leap.