Food inflation snapshot

Food inflation rose for the second consecutive week, pushed by higher prices of fruits, pulses and milk to 16.74%, prompting speculation that the Reserve Bank may tighten money supply at its policy meet next month. Food prices increased by 0.19 percentage point for the week ended May 29 from 16.55% in the previous week. Prices of pulses shot up by 31% , that of milk by 21% and fruits by 18.7%. Consumer staples, such as rice and wheat, turned costlier by 7% and 3% respectively. However, prices of potatoes and onions eased by 30.87% and 12.27% respectively. The RBI, according to analysts, may take steps to control money supply in a bid to cool inflation, which has remained at an elevated level despite moderation from 20% in December.