Food price index up 15.58 percent

India's food price index was up 15.58 per cent in the 12 months to November 14, while the fuel index was down 1.51 per cent.

The worst dry spell in nearly four decades and floods in parts of the country have hurt farm output and pushed up food prices.

On Tuesday, C Rangarajan, Chairman of Prime Minister Manmohan Singh's Economic Advisory Council, said that food price inflation was the biggest worry for the economy in near term and a strong rise in food prices could prompt monetary action.

India's annual wholesale inflation rose 1.34 per cent in October from a year earlier, compared with 0.5 per cent in September and 11.06 per cent a year ago.

Inflation rises to -0.12 percent from -0.21 %

(posted under - Inflation updates) India's food prices jumped an annual 14.8 percent by end of August after a dry spell hurted crops, adding to concerns inflation could climb above the comfort zone of policy makers and herald an end to a soft monetary stance.

The widely-watched wholesale price index fell by a steeper-than-expected 0.12 percent in the 12 months to Aug. 29, its 13th successive fall, mainly due to statistical aberration caused by last year's high energy prices. The WPI figure compares with last week's 0.21 percent annual decline and a market forecast for a decline of 0.08 percent.

The food articles index accelerated to a 14.8 percent rise, from a year earlier, from 14.5 percent the previous week, as drought engulfed nearly half India's districts, hurting summer crops and forcing the government to intervene to bolster supplies and crack down on hoarding.

Inflation at 1.74 percent YoY

The wholesale price index (WPI) is forecast to have fallen 1.74 per cent in the 12 months to August 1, steeper than the previous week's decline of 1.58 per cent, a poll showed on Wednesday.

It would be the ninth straight annual fall in the wholesale price based index, but this is widely seen as a statistical effect caused by sharply higher prices a year earlier.

The index has been rising on a weekly basis since March and analysts said it probably climbed in the week ended Aug. 1, mainly due to rising food prices.

The central bank has also said price pressures are building up, suggesting there was little chance for rate cuts. Weak monsoon rains are also expected to put upward pressure on prices.

source - economictimes

Inflation at -1.58 percent but prices still rise

As per latest official data, annual inflation based on Wholesale Price Index stood at - 1.58% for the week ended July 25, 2009, while it was at 12.53% a year ago. The latest inflation number shows a steeper fall in annual inflation recorded at the end of the previous week at -1.54%.

Government data showed on Thursday that price level for all commodities stayed below zero for the eighth straight week, but prices of

food items continued to surge, signaling political trouble for the Centre and three states preparing for local elections in a few months. Maharashtra is facing assembly polls in October-November, while Haryana that is supposed to go to the polls next year is likely to advance it to this year-end. Jharkhand, now under the President’s rule, is also likely to go to polls later this year.