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  • Supply disruptions drive food inflation up to 16.44%

    Published on October 1, 2010

    Food inflation increased to 16.44 percent in the week ended 18th September as the cost of cereals, fruits, select vegetables and milk rose on account of supply disruptions due to heavy rains and floods.

    Week-on-week, food inflation climbed 0.98 percent points from 15.46 percent in the week ended 11th September.

    This was the fifth consecutive week in which the rate of food prices has risen, after a spell of moderation in July and the first half of August.

    An unusually heavy spell of late monsoon showers had resulted in severe flooding across many states, including Delhi, Haryana, Punjab, Uttar Pradesh, Uttarakhand, Himachal Pradesh and Rajasthan, resulting in disruption of supplies.

    On an annual basis, cereals prices rose by 6.11 percent, driven mainly by higher prices of pulses, rice and wheat.

    While prices of pulses rose 5.94 percent on a yearly basis, wheat and rice became costlier by 9.14 percent and 4.05 percent, respectively.

    Among other food items, milk prices soared by 24.32 percent during the week compared to the same period last year, while fruit rates rose by 15.13 percent.

    Vegetables also became dearer by 5.87 percent on an annual basis. Onion prices went up by 1.39 percent year-on-year, but potato prices declined by 50.48 percent, continuing the trend of the last few months.

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