Food inflation crossed the nine per cent market yet again to touch a ten-week high in early June. Protein-based food products, including milk items, poultry products and fish, were among the contributors to the latest surge in price levels.
The inflation rate for food articles, based on the annual WPI, rose to 9.13 per cent during the week-ended June 4, up from the previous week's year-on-year rise of 8.96 per cent, according to data issued on Thursday by the Ministry of Commerce and Industry. Fuel inflation remained steady at 12.84 per cent.
Food articles surged 1.5 per cent on a sequential basis as fruits, vegetables, eggs and milk turned costlier, even as cereal prices have been coming down. Overall inflation in primary articles slid to 12.62 per cent from 12.86 per cent in the previous week.
"We are in region of high inflationary regime, which is not acceptable. It will have to be brought down," the Union Finance Minister, Mr Pranab Mukherjee, said.
He said a detailed analysis of food items indicated that it is substantially contributed by the milk products, poultry products, fish and certain other items.
During the week, cereals prices decreased 0.23 per cent, while pulses dropped by 0.54 per cent. However this decline was negated as milk prices were up over 4 per cent during the week, while inflation in the product was recorded at 15.3 per cent.
Vegetable prices rose by 3.26 per cent during the week and the category of egg, meat and fish increased 2.47 per cent