After declining for two consecutive weeks, India?s food inflation rose again mainly due to rise in fuel prices and disruption in transportation of goods due to heavy monsoon rains in several parts of the country, mainly from northern and eastern India. According to data released on Thursday by commerce and industry ministry, food inflation marginally rose to 12.81% for the week ended July 3, from 12.63% a week ago.
During the period, rice, wheat, pulses, onions become costlier by 0.03-3.80% on a week to week basis. However, potatoes became cheaper by 0.85% and fruits by 0.91%. Besides, prices of bajra (3%), fish-inland and mutton (2% each) and eggs, wheat and maize (1% each) moved up. Finance minister Pranab Mukherjee on Wednesday had expressed hope that inflation would ease after kharif harvest comes into the market around September. Meanwhile, an FE analysis of main food prices across major cities in the country earlier in the week observed rains have disrupted supplies of many food items especially in North.
Heavy shower in Punjab and Haryana, last week disrupted the supply of vegetables and foodgrain. The rise in freight rates due to increase in fuel cost also worsened the situation as trucks were off the road on last Monday, the analysis showed.
Price of rice and wheat, which have remained flat since the last two months in almost all the major cities across the country mainly because of massive stocks and bumper harvest, have increased by over 5% during the week ending July 12 in Mumbai and Kolkata.
A ministry of agriculture statement last week said prices of tur dal, urad dal, moong dal and masoor dal decreased during the week, while the prices of rice, wheat, atta, gram dal, mustard oil, vanaspati and potato remained steady. Sugar, milk, groundnut and onion prices increased during the period.