Food price index rose 16.23 per cent in the year to May 15.
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The fuel price index climbed 12.08 per cent.
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Meanwhile, the speed of rise in food prices slackened from the previous week”s annual rise of 16.49 per cent.
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The fuel price inflation also slowed to 12.08 per cent from the previous week”s 12.33 per cent.
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The primary articles index was up 15.90 per cent, compared with the previous week”s annual reading of 16.19 per cent.
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Wholesale prices, however, eased in line with expectations to 9.59 per cent in April from a year earlier.
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This in turn provided further evidence that the RBI will hold off from raising interest rates at least until its next scheduled meeting in July.
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Earlier, Planning Commission Member Abhijit Sen stated that food inflation is likely to decrease to 4 to 5 % by November.
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This is from the current over 16 % after the arrival of Kharif (summer) crops.
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Meanwhile, he added that farm sector growth will be altered upwards to 0.2 % in 2009-10.
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This, however, is from the earlier estimate of minus 0.2 %.
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Prices have started falling from March after good Rabi arrival.
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Moreover, for some commodities such as onion and potatoes, the decline is very sharp.
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But, however, the overall prices are very high and after Kharif season, prices will commence to decline.
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He also said that it is quite possible food inflation will decline to 4-5 % by November this year.
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On the other hand, experts had predicted a decrease in food inflation with the arrival of Rabi crops in April.
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Mainly due to high prices of vegetables and fruits, food inflation carried on increasing and rose to 16.49 % for the week ended May 8.
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Prime Minister Manmohan Singh had expressed optimism that overall inflation would decline to 5-6 % by December.
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In addition, on farm sector growth, Sen said growth is expected to be 0.2 % in 2009-10.
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This is due to the upward revision in production in third advance estimate.
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In 2010-11, the farm sector growth is likely to be 5-6 % if met department forecast on monsoon comes true.
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Foodgrains production has been revised upwards to 218.19 million tonnes from 216.85 million tonnes quoted in the second advance estimate released in February.
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Wheat production is projected at a record 80.98 million tonnes in 2009-10.
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The May increase in nonpetroleum prices was led by a 2.5 percent advance in prices for nonpetroleum industrial supplies and materials.
Posted by Marley Sharp on May 29, 2010 at 12:48 PM
Though even with the rise, much of the gains were lost to inflation thanks to higher energy costs.
Posted by Fuel Injectors Wholesale on June 6, 2010 at 1:19 PM
Import prices from Mexico, from Canada, and from the European Union all rose in May, as higher petroleum prices contributed to the increases.
Posted by Anonymous on June 9, 2010 at 10:35 AM
The May increase in nonpetroleum prices was led by a 2.5 percent advance in prices for nonpetroleum industrial supplies and materials.