India's food inflation
eases to 10.05% on August 26
New Delhi, August 26, 2010 (PTI):
Annual food inflation fell for the second straight week, to 10.05%
for the week ended August 14, as prices of vegetables like potato
and onion declined. Food inflation had softened to 10.35% for the
week ended August 7against 11.40% in the previous week. On an yearly
basis, potato became cheaper by over 50%, while vegetables overall
saw a decline of 14.23%. Onion prices also fell by 7.29%, official
data released today showed.
Cereal prices, however, rose by 7.10%, driven mainly by
higher prices of pulses, rice and wheat compared to the same period
last year. While pulses became dearer by nearly 16%, prices of rice
and wheat rose by 7.72% and 7.61%, respectively, during the week
under review on yearly basis. Among other food items, milk prices
soared by 18.22% during the week over the same period last year, and
fruits became dearer by 15.24%.
India's food inflation eases to 16.55% on June 3
New Delhi, June 3, 2010 : India's food inflation rate rose slightly to 16.55 per cent in the year
to May 22 from 16.23 per cent in the previous week, while fuel prices
were up 14.14 per cent from a year ago, mainly due to higher prices of
electricity, an official statement said here today, quoting provisional data.
According to the figures released today, the prics of pulses were up by
30.84 per cent from a year ago, milk by 21.12 per cent, fruits by 13.74
per cent, cereals by 5.33 per cent, rice by 7.30 per cent, wheat by 3.07
per cent and vegetables by 1.34 per cent. However, the prices of potatoes were down by 34.9 per cent and onions by
11.55 per cent in this period, it said.
India's annual food inflation rose to 16.44% 0n May 13
New Delhi, May 13, 2010:
India's annual food inflation rose to 16.44% in the week ended May
1 from 16.04% in the previous week, the Commerce & Industry
Ministry said today. Inflation in this group stood at 8.18% in the
corresponding week of last year. The WPI for Food Articles group
rose by 0.6% to 294.0.Annual rate of inflation, calculated on point
to point basis, for the Primary Articles group rose to 16.76% from
13.93% in the week ended April 24, according to the Commerce
Ministry data. Inflation in this group was at 6.39% during the week
ended May 2, 2009. The WPI for this group jumped by 2.9% to 299.5.
Non-Food Articles inflation shot up to 21.24% in the week
ended May 1 from 11.04% in the preceding week. It was at 2.41% in
the comparable week last year. The WPI for Non-Food Articles group
surged by 9.9% to 283.1.
Food inflation rate declines to 16.04 %
New Delhi, May 6, 2010:India's food inflation rate declined further to 16.04 per cent in the year to
April 24 from 16.61 per cent in the previous week, while fuel prices were up
12.69 per cent from a year ago, an official statement said here today, quoting
provisional data. The Government has been worried about the rising food prices since the worst
monsoon in more than three decades last year and floods in some states adversely
affected the Kharif crop. The Government has initiated various steps to bring
the prices under control, but their impact is yet to be fully felt by the common man.
According to the figures released today, the prices of pulses were up 30.58 per
cent during the week from a year ago, milk by 21.12 per cent, fruits by 14.49
per cent, cereals by 7.67 per cent, rice by 8.28 per cent and wheat by 6.48 per
cent. Overall, the annual rate of inflation for Primary Articles, which have a weight
of 22.02 per cent in the Wholesale Price Index (WPI), stood at 13.93 per cent
for the week ended April 24 as compared to 13.55 per cent for the previous week
and 6.77 per cent during the corresponding week, ended April 25, 2009, of the
previous year.
Food inflation up 16.61%
NEW
DELHI, April 29, 2010: India's annual food price inflation eased in
mid-April, but fuel price inflation quickened maintaining an upside
pressure on the wholesale price index that could prompt further
monetary tightening by the central bank. The food price index rose
16.61 percent in the 12 months to April 17, lower than an annual
rise of 17.65 percent in the previous week, government data showed
on Thursday. The fuel price index rose an annual 12.69 percent,
higher than the previous week's reading of 12.45 percent.
Wholesale price inflation in March touched a 17-month high of
9.9 percent, prompting the Reserve Bank of India (RBI) to raise
rates in April for the second time in as many months. Reserve Bank
of India Governor Duvvuri Subbarao said rising prices for food, fuel
and wages have made inflation more of a generalised and demand-side
problem. Much of the country's inflationary pressures were initially
on the supply-side as a result of the 2009 monsoon failure that
pushed up food prices. But summer monsoon is likely to be normal
this year, with rainfall expected to be 98 percent of the long-term
average, the government said last Friday The RBI has forecast the
headline inflation to ease to 5.5 percent at end-March 2011 on
normal monsoon.
India's food inflation rate rises to 17.65 %
New Delhi, April 22, 2010:
India's food inflation rate rose to 17.65 per cent in the year to April 10 from
17.22 per cent in the previous week, while fuel prices were up 12.45 per cent
from a year ago, an official statement said here today, quoting provisional data.The Government has been concerned about the rising prices of food products after
the worst monsoon in more than three decades last year and floods in some states
adversely affected the Kharif crop.
According to the data released today, the prices of pulses were up 28.77 per
cent during the week from a year ago, milk b 22.21 per cent, fruits by 18.81 per
cent, cereals by 10.06 per cent, rice by 9.33 per cent and wheat by 11.18 per cent.However, the prices of potatoes were down by 30.30 per cent, onions by 6.63 per
cent and vegetables by 1.38 per cent, the figures showed. Overall, the annual inflation rate for Primary articles, which have a weight of
22.02 per cent in the wholesale price index (WPI), stood at 14.14 per cent for
the week ended April 10 as compared to 13.88 per cent for the previous week and
6.42 per cent during the corresponding week, ended April 11, 2009, of the
previous year.
Inflation at 9.9% on broad price rise
NEW DELHI, April 16, 2010: Inflation touched a 17-month high of 9.9% in March
spurred by an all-round increase in prices, mounting pressure on the central bank to raise key policy rates in the monetary
policy review next week. A spurt in global demand due to a remarkable recovery by China and positive signals from the US will allow the Reserve Bank of India to target inflation aggressively without worrying about derailing
growth momentum. The central bank is widely expected to raise policy rates by 25-50 basis points on Tuesday.
“The RBI would be within its rights to signal hawkish, but act dovish,” said Suman K Berry, member of the prime minister’s economic
advisory committee. Annual year-on-year inflation based on the wholesale price index
stayed above the central bank’s year-end projection for the third straight month. In January the Reserve Bank raised its wholesale
price inflation forecast to 8.5 % from 6.5 %.
Food inflation up to 17.70 per cent
NEW DELHI,
April 8, 2010: Higher prices of milk, fruits and pulses pushed food
inflation to 17.70 per cent for the week ended March 27, fueling
expectations that RBI may further tighten rates in its annual
monetary policy on April 20. Food inflation in the previous
week stood at 16.35 per cent. With prices of essential items rising
and fears of food inflation spreading to manufactured goods, the
overall inflation for March, data for which is expected next week,
is likely to cross the double digit mark.
The overall inflation, which includes variation in prices of
food and non-food items, was 9.89 per cent in February. On an annual
basis, pulses became dearer by 32.60 per cent, milk by 21.12 per
cent, fruits 14.95 and wheat by 13.34 per cent. On a weekly basis,
the index for food articles rose by 0.9 per cent
as fish marine, milk, fruits, masur and vegetables became costlier.
In a bid to rein in inflation, Prime inister Manmohan Singh is
holding a meeting of the core committee of Chief Ministers with
representations from 10 states and senior Cabinet ministers later in the day.
The core group of chief ministers, set up in February,
comprises Andhra Pradesh, Assam, Bihar, West Bengal, Punjab,
Gujarat, Haryana, Tamil Nadu, Madhya Pradesh and Chhattisgarh.
Besides CMs, the other members of the committee are Finance Minister
Pranab Mukherjee, Food and Agriculture Minister Sharad Pawar and
Planning Commission Deputy Chairman Montek Singh Ahluwalia.
Food inflation fell to 16.22 per cent
New Delhi, March
25, 2010 (PTI): India's food inflation rate declined further to 16.22 per cent in the year to
March 13 from 16.30 per cent in the previous week, while fuel prices were up
12.68 per cent from a year ago, an official statement said here today, quoting
provisional data. The declining trend will bring some relief to the Government for which the
continued high prices of food products have been a source of worry after the
worst monsoon in more than three decades last year and floods in some States adversely affected the Kharif crop.
According to the data released today, the prices of pulses were up 31.68 per
cent in the 12 months to March 13, wheat by 15.09 per cent, cereals by 10.64 per
cent, rice by 7.42 per cent, vegetables by 5.12 per cent, potatoes by 5.62 per
cent, fruits by 11.06 per cent and milk by 15.31 per cent. The prices of onions
have declined by 6.64 per cent, the data showed.icants saw an inflation of
12.68 per cent over the week led by 16.
Food inflation rise to 17.81%
New Delhi, March 11, 2010 (PTI): Food inflation eased a
bit to 17.81 per cent during the last week of February, but may
not soothe overall inflation as petrol and diesel prices have risen
sharply following the hike in duty rates.While food prices are
expected to moderate further in the weeks ahead, the overall
inflation may hit double digits by fiscal end as manufactured and
fuel prices are going to get costlier, say experts.
Food inflation declined by 0.06 percentage points during the
week ended February 27 from 17.87 per cent in the previous week.
Though a range of essential items still continue to be expensive,
the rate of price rise has fallen in the past few weeks. On
year-on-year pulses were dearer by 33.38 per cent, slightly lower
than over 35 per cent in the previous week, while potatoes turned
costlier by 22.46%t.
Biofuels lift food prices 75 percent
Demand for biofuels in Europe and the United States has forced up food prices 75 percent around the world, according
to a World Bank report that was leaked and published in The Guardian newspaper on July 04, 2008.
The number stands in sharp contrast to the 3 percent contribution to higher food
pricing estimated by the United States Department of Agriculture. Meanwhile, a study
commissioned by food manufacturers pegs the contribution of biofuels on food prices at between 25 percent and 35 percent.
The World Bank argues that these policies have distorted the market for grains
in three ways, according to The Guardian. First, crops that would have been sold
for food have been diverted for biofuels production. Second, land is now being
used for fuels rather than food. And third, the mandates have set off
speculation in financial markets. "Without the increase in biofuels, global wheat and maize stocks would not have
declined appreciably and price increases due to other factors would have been
moderate," The Guardian quoted the report as saying.
The World Bank earlier this year issued a warning on biofuels and blamed them,
in part, for food crises in developing countries. The Guardian said that the
food impact report was delayed for political reasons, specifically not to
discredit the Bush Administration's strong support for biofuels, particularly
corn-based ethanol.
How Inflation is calculated in India
India uses the
Wholesale Price Index (WPI) to calculate and then decide the rate of
inflation in the economy. Most developed countries use the Consumer
Price Index (CPI) to calculate inflation. WPI was first
published in 1902, and was one of the major economic indicators
available to policy makers until it was replaced by the Consumer
Price Index in most developed countries by in the 1970s.
WPI is the index that is used to measure the change in the
average price level of goods traded in wholesale market. In India,
price data for 435 commodities is tracked through WPI which is an
indicator of movement in prices of commodities in all trades and transactions.
It is also the price index which
is available on a weekly basis with the shortest possible time lag
-- two weeks. The Indian government has taken WPI as an
indicator of the rate of inflation in the economy.
CPI is a statistical time-series
measure of a weighted average of prices of a specified set of goods
and services purchased by consumers. It is a price index that tracks
the prices of a specified basket of consumer goods and services,
providing a measure of inflation.
CPI is a fixed quantity price index and considered by
some a cost of living index. Under CPI, an index is scaled so that
it is equal to 100 at a chosen point in time, so that all other
values of the index are a percentage relative to this one.
Some economists argue that it is high time that India
abandoned WPI and adopted CPI to calculate inflation. India is
the only major country that uses a wholesale index to measure
inflation. Most countries use the CPI as a measure of inflation, as
this actually measures the increase in price that a consumer will
ultimately have to pay for.
CPI is the official barometer of inflation in many
countries such as the United States, the United Kingdom, Japan,
France, Canada, Singapore and China. The governments there review
the commodity basket of CPI every 4-5 years to factor in changes in
consumption pattern. WPI does not properly measure the exact price
rise an end-consumer will experience because, as the same suggests, it is at the wholesale level.
The main problem with WPI calculation is that more than
100 out of the 435 commodities included in the Index have ceased to
be important from the consumption point of view. India constituted
the last WPI series of commodities in 1993-94; but has not updated
it till now that economists argue the Index has lost relevance and
can not be the barometer to calculate inflation.
Source: Rediff.com
Inflation zooms to 13-year high of 11.05%
NEW DELHI, June 20, 2008: Inflation on Friday shot up to
a 13-year high of 11.05 per cent fuelled by rise in prices of petrol,
diesel and cooking gas, giving no relief to the government from the
spiralling prices in an election year. The rise in petrol, diesel and
cooking gas prices announced by the government on June 4 put the
pressure on price line pushing the inflation by week ending June 7, up
from 8.75 per cent in the preceding week.
Within minutes of the release of the government data,
sensitive BSE index of stock markets tanked about 350 points,
reflecting the nervousness of the investors about the efficacy
of the measures being taken by the Finance Ministry and the
Reserve Bank of India. Besides fuel prices, rise in prices of
food products particularly edible oil and manufactured goods
added to the pressure on price line and woes of the government. Previous
high inflation of 11.11 per cent was witnessed on May 6, 1995.
Leading economists and analysts predicted that price
pressures would prompt the Reserve Bank of India to further
tighten the monetary policy, possibly by making short term
lending to banks costlier. This could further lead to increase in
interest rates for cars, homes and consumer finance, economists
said and feared that present situation could also force a hike in
lending rates for the industry and many banks are already
contemplating hiking the prime lending rate.
In his first comments after the inflation numbers reached
a 13-year high of 11.05%, Finance Minister P Chidambaram said petro
products were hugely responsible for the sharp rise in prices.
He added that crude prices are up 37 per cent since the
Budget was presented this year. He said that the double-digit
inflation numbers were expected and he had warned the Cabinet fuel
price hike would push inflation. Finance Minister Palaniappan
Chidambaram admitted it was "a difficult time", and
said the government would look at introducing measures to tackle
the problems.
Unlike most countries, India calculates inflation on the
wholesale price of a basket of 435 commodities, which means actual
prices paid by the consumer are much higher.With the central bank
expected to increase interest rates to try to control inflation,
India's economic growth is expected to slow down. Last week, India's
central bank raised short-term borrowing rates from 7.75% to
8%. |
|
