Food inflation surges to 2-mnth high at 9.01%

Rising prices of essential items like cereals,rice,wheat,pulses,vegetables and protein-rich products pushed food inflation to a two-month high of 9.01 per cent.

Rising prices of essential items like cereals,rice,wheat,pulses,vegetables and protein-rich products pushed food inflation to a two-month high of 9.01 per cent for the week ended May 28 even as experts said a good monsoon is likely to cool down prices.

Food inflation during the previous week stood at 8.06 per cent,while in the last week of May,2010,it was as high as 20.62 per cent. The last time food inflation was above 9 per cent was for the week ended March 26,when it had stood at 9.18 per cent.

According to data released by the government today,while wheat prices rose by 0.6 per cent week-on-week,that of onion,rice and vegetables rose by 2.04 per cent,0.24 per cent and 0.54 per cent week-on-week respectively. While milk became dearer by 1.36 per cent and egg,meat and fish by 0.87 per cent,the data showed.

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Year-on-year,fruits became 30.78 per cent more expensive while onions were up by over 14 per cent.

Milk prices went up by 8.49 per cent and egg,meat and fish became dearer by 6.99 per cent.

The progress of the monsoon will play a major part in determining the food inflation trajectory. If the monsoon is normal,we may well see a moderation in the rate of price rise of food items in the months to come, Standard Chartered head of research Samiran Chakraborty said.