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New Delhi, Feb 11 :
Even as Prime Minister Manmohan Singh stressed
last week that the worst was over on rising prices of
essential items, India's annual food inflation based on
wholesale prices rose to 17.94 percent for the week
ended Jan 30.
The annual rise in the index for food articles was 17.56
percent for the week before, as per official data
released by the commerce and industry ministry Thursday.
Prices of essential items continued to rise in the
country, with vegetables dearer by 20.93 percent,
potatoes by 40.57 percent, pulses by 41.24 percent and
fruits by 8.67 percent during the 52-week period.
The limited data on wholesale price index further showed
a sharp rise in the index for primary articles by 15.75
percent, while that for fuels was up 10.44 percent.
India's overall inflation rate, based on the wholesale
prices index, had risen sharply to 7.31 percent in
December from 4.78 percent the previous month mainly on
account of higher food prices. The complete statistics
for January are expected Friday.
While addressing a conference of chief ministers on how
to curb prices here last week, the prime minister said
although the war on prices had only met with partial
success, the worst was over on curbing India's annual
food inflation.
"While we did well to protect incomes, we have been less
successful on food prices," the prime minister told the
conference, adding: "Let me say, in the end, that I
believe the worst is over as far as food inflation is
concerned.”
In fact, fearing inflationary expectations in the
economy, the central bank had changed its monetary
policy stand late last month from an accommodative
regime to a strict vigil on monetary expansion in a bid
to bring down prices.
The Reserve Bank of India (RBI) also sharply raised its
projected annual inflation rate at the end of this
fiscal to 8.5 percent from the 6.5 percent that was
predicted in the previous monetary policy update three
months ago.
"Though the inflationary pressures in the domestic
economy stem predominantly from the supply side, the
consolidating recovery increases the risks of these
pressures spilling over into a wider inflationary
process," RBI Governor D. Subbarao said.
The price rise of some essential food items over the
52-week period:
- Potatoes: 40.57 percen
- Pulses: 41.24 percent
- Cereals: 12.15 percent
- Rice: 9.90 percent
- Milk: 14.16 percent
- Wheat: 15.47 percent
- Vegetables: 20.93 percent
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