India's food and fuel inflation seen higher

Inflation for the Food Articles group stood at 10.86 percent in the week ended August 21 as against 10.05 percent in the previous week, showed a government data released on Friday.

The annual rate of inflation for Primary Articles group stood at 15.19 percent for the week ended August 21, as compared to 14.75 percent for the previous week and 8.87 percent during the corresponding week of the previous year, the data showed.

Inflation for the Fuel and Power group increased to 12.71 percent from 12.57 percent in the preceding week, according to the data. The index for the fuel, power, light, and lubricants rose by 0.2 percent to 386.7 from 385.9 for the previous week due to higher prices of light diesel oil, furnace oil and aviation turbine fuel and naphtha. However, the prices of bitumen declined.

The annual rate of inflation for the Fuel and Power group, calculated on point to point basis, stood at 12.71 percent for the week ended August 21, 2010 as compared to 12.57 percent for the previous week and 8.87 percent during the corresponding week of the previous year.

The index for primary articles rose by 1.4 percent to 312.5 from 308.1 for the previous week.

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The index for Food Articles' group rose by 1.8 percent to 303.3 from 297.9 for the previous week due to higher prices of fish-inland (22%), fruits & vegetables (4%) and gram (1%). However, the prices of moong and eggs (2% each) and masur (1%) declined.

The index for 'Non-Food Articles' group rose by 0.4 percent to 291.7 from 290.6 for the previous week due to higher prices of raw silk (2%) and groundnut seed, raw cotton, copra and rape & mustard seed (1% each). However, the prices of castor seed (3%), raw rubber (2%) and gingelly seed (1%) declined.

The index for 'Minerals' group rose by 1.4 percent to 867.5 from 855.2 for the previous week due to higher prices of fluorite (3%) and barytes and iron ore (2% each). However, the prices of steatite (26%), asbestos (21%) and feldspar (4%) declined.