Food inflation rises to 19.05%

Rising prices of potatoes, onions and pulses pushed food inflation to a high of 19.05 per cent in the fourth week of November, mounting pressure on the government to rein in rates of essential items.

Food inflation was 17.47 per cent for the week ended November 21.

However, the overall wholesale price index-based inflation for the month ended October stood at 1.34 per cent.

The Reserve Bank will review its current easy monetary policy stance on January 29, although RBI Governor D Subbarao has said WPI is 'quite modest' compared to consumer prices.

A worried Congress president Sonia Gandhi had said during the week that 'price rise of essential commodities continues to be a matter of highest concern to us.'

As per the data released on Thursday, potatoes cost more than double on an annual basis, while onions 23 per cent more.

Rates of other essential commodities like rice rose by 11.75 per cent, wheat 12.60 per cent and pulses rose by 42 per cent.

At the same time, fruits were costlier by 13 per cent while milk was 11.36 per cent more expensive.

Gandhi had said she has personally spoken to the prime minister and the finance minister on the issue and they have assured her that the government will take 'every possible step' to address the issue.

"If inflationary pressure persists for a long time it can fuel inflationary expectations and monetary policy will have to take a nuanced view on this," RBI governor said on Wednesday.

During the week, food articles group rose by 0.7 per cent as the prices of moong, spices and arhar increased by 3 per cent.

At the same time fish-inland and masur rose by 2 per cent each, while prices of gram, wheat, rice, tea, fruit and vegetables moved up 1 per cent.

However, prices of maize and bajra declined by 1 per cent each during the week. Fuel, power, light and lubricant group remained unchanged.