Costlier fruit, veggies push up inflation
New Delhi, May 13
Analysts, however, were of the view that the effect of fresh crop arrivals would be visible only in the second half of this fiscal ó by when it would also be clear whether or not the country will get a normal monsoon.
Annual food inflation in the previous reporting week was 16.04 per cent.
On an annual basis, pulses turned costlier by 32.49 per cent and fruits by 15.51 per cent. Week-on-week, potato turned expensive by 5.95 per cent, tea by five per cent, fruits and vegetables two per cent while urad, arhar, masur, condiments and spices by one per cent each.
Prices of barley declined by 2 per cent and maize, ragi and jowar by one per cent each.
"The trend of rising food inflation would continue for some more time till the effect of normal monsoon becomes visible. We expect some easing in the second half," rating agency Crisil Principal Economist DK Joshi said.
Yesterday, RBI deputy governor Subir Gokarn had said that overall inflationary pressure was starting to become visible.
Earlier this week, Finance Secretary Ashok Chawla said that overall inflation was likely to moderate to more acceptable levels on good rabi (winter) crop and better rainfall prediction.
Last month, RBI had hiked key policy rates to check the spread of price rise from food to non-food items. The rate hike was aimed at tempering demand for loans, which would in turn check consumer spending.
Wholesale price inflation touched a 17-month high of 9.9 per cent in March, higher than RBIís projection of 8.5 per cent. Data for April is due to be released on Friday. Food Inflation had crossed 20 per cent in December but has remained volatile in the last few weeks.
Among non-food articles, sugarcane prices rose by 50 per cent during the reporting week, while raw cotton prices rose by 2 per cent. Fuel index also rose due to a three per cent increase in lubricants prices and one per cent in furnace oil in the reporting week. ó PTI