Food inflation jumps to 15.58% as potato prices soar

STAFF WRITER 14:25 HRS IST

New Delhi, Nov 26 (PTI) Food inflation shot up to 15.58 per cent for the second week of November on the back of potato prices, which have more than doubled in the past one year.

Other essential items like pulses and onion rose by more than 25 per cent in the wholesale market, government data on inflation for week ended November 14 showed.

"Food inflation is incredibly high...The drought has aggravated the situation and I expect the wholesale price- based inflation to rise to around 7 per cent by March next year," said HDFC Bank economist Jyotinder Kaur.

With inflationary pressure building up, the RBI in its next policy review may take steps to check easy money. "It is likely that RBI in its January policy might go for monetary tightening measures and raise Cash Reserve Ratio (CRR) or policy rates," Kaur said.

Food inflation rises to 14.55%

Food inflation
NEW DELHI: Food inflation shot up to 14.55% for the first week of November as pulses, mutton and spices turned costlier. Against this, food inflation stood at 13.68% for the week ended October 31.

Prices of urad rose by 9%, mutton and moong by 4% each, while condiments & spices, barley, wheat and bajra turned dearer by 3% each compared to the previous week.

Besides, raw jute prices increased by 7%, fodder by 5% and raw cotton by 3%.

However, on the weekly basis, poultry chicken and fruits & vegetables became cheaper by one per cent each.

Among fuels, prices of aviation turbine rose by 11% while that of furnace oil was up one per cent.

On an annual basis, prices of potatoes have more than doubled, while onions have become expensive by about 40%.

TOI