Food inflation hits double digits

Food inflation has hit double digits in mid-August on the back of costlier vegetables, especially onion, fruits and protein-based items, prompting finance minister Pranab Mukherjee to admit the trend was disturbing. Official data released on Thursday showed food inflation, as measured by the wholesale price index, stood at 10.05% in the week ending August 20 – up from the previous week’s 9.80%. Food inflation had last hit double digits in March. Food prices have remained volatile in recent weeks after displaying easing signs for a few weeks. Onion prices are again proving to be a problem. The latest data shows onion prices shot up 57.01% year-on-year, fruits 21.58%; egg, meat and fish 12.62%; vegetables 15.78% and potatoes 13.31%. Experts say heavy rains in the onion growing areas in Maharashtra might have hurt supplies, while the spurt in vegetable prices was attributed to seasonal factors.