Retail price of major food items across the country remained largely stable for the week ending June 14, though the impact of high food prices in the earlier part of the year has started spreading in other sectors as defined by the double-digit wholesale- price index for the month of May.
The WPI surged to 10.16% in May, the highest in the last 19 months, prompting calls from Planning Commission deputy chairman Montek Singh Ahluwalia that RBI needs to look more towards curbing runaway inflation than on growth. However, some industry observers feel that the Central Bank should not act in haste and instead it should focus more on taking steps which would maintain the growth momentum.
The WPI data showed that essential items like pulses, vegetables, sugar, metal, textiles and plywood have also gone up, as inflation has spread to non-food items. ?It (high inflation) is always a matter of concern. Something more needs to be done by RBI. RBI is already doing it… (We are) in touch with the RBI,?finance secretary Ashok Chawla said. Food inflation remained at the enhanced level of 16.49% despite some moderation in the last few months.
An FE analysis of retail prices of major food commodities in 11 major centres across the country showed barring marginal increase in retail price of wheat in Lucknow, prices of most other commodities which FE tracked either remained stable or dropped slightly.
Sugar prices continued their downward march and fell by almost 5.08% in Bangalore and by 3.1% each in Mumbai and Delhi during the week ending June 14.