Increase in Food inflation – 16.55%

It was because of high prices of pulses, vegetables and fruits, India’s food inflation rose to 16.55% . Prices of food articles rose to 16.55% for the week end May 22 as compared to the last week’s rise.

The primary article index rose to 16.89% for the week as compared to the previous week. As reported by the government the fuel price index has also increased to 14.14% for the week ended May22 as compared to 12.08% in the previous week.

Last week the Planning Commission Member Abhijit Sen said that the food inflation is expected to decline to 4 to 5 per cent by November from the current over 16% after the arrival of Karif(summer) crops. It was also predicted by the experts that food inflation will decline with the arrival of Rabi crops in April. It was reported that Prime Minister Manmohan Singh is confident regarding the decline in the overall inflation to 5-6 percent by the month of December.

Thus, the overall inflation has increased by 0.32% from 16.23% in the last week.