Food inflation touches 10-week high to 9.13%

Food inflation touched 10-week high as prices of protein based food products continued to rise prompting govt to say high inflation regime is unacceptable.

By ET Bureau | Updated: Jun 23, 2011, 04.04 PM IST

NEW DELHI: Food inflation touched a ten-week high, as prices of protein based food products continued to rise prompting the government to say that a high inflation regime is unacceptable.

Food inflation for the week ending on June 11th stood at 9.13% up from 8.96% in the previous week. Food prices rose by 1.54% during the week. Cereal prices have been coming down while the structural factors are causing food inflation to stay high.

“We are in region of high inflationary regime, which is not acceptable. It will have to be brought down," said Pranab Mukherjee, Finance Minister.

While food inflation has come down from almost 23% in the year ago period, it still remains at uncomfortable levels. "Detailed analysis of food items indicate that it is substantially contributed by the milk products, poultry products, fish and certain other items," said Mukherjee.

During the week cereal prices declined by 0.23%, while price of pulses dropped by 0.54%. However this decline was negated as milk prices rose by 4.26%, with inflation in milk at 15.3%. Vegetable prices also rose by 3.26% during the week and the category of egg, meat and fish rose by 2.47%.

Overall inflation in primary articles came down to 12.62% from 12.86% in the previous week. Fuel inflation remained steady at 12.84%.

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