Indian Food inflation Index Discussion Thread

Discussion in 'Economy & Infrastructure' started by Someoneforyou, Feb 23, 2011.

  1. Someoneforyou

    Someoneforyou Regular Member

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    Mass rally against inflation in Indian capital

    Mass rally against inflation in Indian capital
    India - 23 February 2011

    NEW DELHI – Tens of thousands of people gathered in the Indian capital on Wednesday to protest against inflation, complaining that rising prices were increasing hardship for the country's many poor.

    The mostly working-class demonstrators, many carrying Communist flags and shouting slogans against inflation and corruption, converged on the centre of New Delhi for the rally, with surrounding roads closed to traffic.

    The rally was organised by the Centre of Indian Trade Unions (CITU), which joined forces with other unions to pressure the government over inflation before the unveiling of a new annual budget on Monday.

    "Workers from 19 states, thousands of women among them, are reaching Delhi and will march to parliament to seek their rightful share in the country's so-called 'robust growth story'," said a CITU statement.

    The CITU said it expected 800,000 to one million people, though this figure could not be independently verified. Police were unable to estimate the number of demonstrators.

    Prime Minister Manmohan Singh has described inflation as a "serious" threat to India's growth, and the government has been racing to boost vegetable and other supplies to bring down soaring food prices.

    The most recent data show annual food inflation at 11.05 percent, down from its highs of nearly 20 percent, while headline inflation as measured by the wholesale price index is at 8.23 percent.

    Police spokesman Rajan Bhagat told AFP that nearly 2,000 policemen had been deployed in central Delhi to keep order during the demonstration.

    "We have instructed the police to ensure that the crowd does not vandalise government buildings or monuments in central Delhi," he said.

    One protester, Jagdeesh Thakur, president of a secondary school teachers' association in the northern state of Uttar Pradesh, said the left-leaning government was "on the wrong path".

    "We need to control inflation. Stop unemployment and stop privatisations," he told AFP. "The government is on the wrong path. It has forgotten the poor. It is only interested in helping the rich."

    Rishi Pal, a 52-year-old member of a farmers' union from the northwestern state of Punjab, said: "We need the government to control prices. Poor people can't feed their families."

    As well as surging inflation, a host of corruption scandals ranging from the Delhi Commonwealth Games last October to the sale of telecom licences has sapped the energy of Singh's administration and led to months of bad publicity.

    On Tuesday, Singh agreed to set up a cross-party investigation into the licence sales in 2008 that has led to a police investigation and the arrest of his former telecom minister, A. Raja.

    Opposition parties wrecked the last session of parliament in 2010 by holding protests every day demanding an inquiry into the cut-price sales, which could have cost the country up to $40 billion in lost revenue.

    The government, a coalition led by Singh's Congress party, is expected to pass its budget for the next fiscal year on Monday next week.



    Source: AFP
     
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  3. Someoneforyou

    Someoneforyou Regular Member

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    Food inflation rises to 8.55% for week ended May 14
    India - 26 may 2011

    NEW DELHI: Food inflation shot up to 8.55% for the week ended May 14, the highest level in four weeks, as prices of fruits, cereals and protein-based items escalated.

    Food inflation, as measured by the Wholesale Price Index (WPI), was on a declining trajectory for the previous three weeks. The figure for the seven-day period under review was 1.08 percentage points higher than the 7.47% inflation rate recorded in the previous week.

    During the week ended May 14, cereals became costlier by 5.03% year-on-year and prices of onions were up by 8.32%, official data released here showed.

    Prices of fruit rose by 32.37%, milk by 5.53% and eggs, meat and fish by 8.26%.

    Rice also became 2.63% more expensive and potatoes 0.17% costlier on an annual basis.

    Food inflation remained in double digits for most of 2010, before showing signs of moderation from March, 2011.

    Prices of vegetables and pulses declined by 1.46% and 9.49%, respectively. Also, wheat became cheaper by 0.30% on an annual basis.

    On an annual basis, the primary articles category saw an inflation rate of 11.60%.

    On the other hand, prices of non-food primary articles were up 23.22% during the week under review. Fibres became dearer by almost 61%, while minerals were up 11.78%.

    The government and Reserve Bank had said that in the months to come, inflationary pressure would be more from core (non-food) items on account of high global prices of commodities, particularly crude.



    Source: Press Trust of India
     
  4. Someoneforyou

    Someoneforyou Regular Member

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    No respite from price rise, food inflation up 9.01%

    No respite from price rise, food inflation up 9.01%
    India - 9 June 2011

    NEW DELHI: Notwithstanding the government's projections of a moderation in the rate of price rise of food items, food inflation jumped to a two-month high of 9.01 per cent for the week ended May 28 on the back of costlier fruits, onions and protein-based items.

    Food inflation, as measured by the Wholesale Price Index (WPI), was 8.06 per cent in the previous week, while it was as high as 20.62 per cent during the last week of May, 2010.

    The latest numbers are the highest level of food inflation since the week ended March 26 when it had stood at at 9.18 per cent. For the last two months, the rate of price rise of food items has been below the 9 per cent mark.

    As per data released by the government on Thursday, fruits became 30.78 per cent more expensive year-on-year, while onions were up by over 14 per cent.

    During the week under review, milk prices were up by 8.49 per cent and egg, meat and fish became dearer by 6.99 per cent. Cereals also became costlier by 5.77 per cent on an annual basis.

    However, the prices of pulses went down by 9.49 per cent year-on-year, while vegetables and potatoes became cheaper by 0.20 per cent and 2.87 per cent.

    Inflation in overall primary articles, which have a weight of 20 per cent in the headline WPI, was reported at 11.52 per cent during the week under review, up from 10.87 per cent in the previous week.

    However, inflation of non-food primary articles fell to 20.97 per cent, as against 21.31 per cent in the previous week. This is likely to bring some cheer to the government and the Reserve Bank, who have termed inflationary pressure from the core (non-food) segment as the biggest threat to the economy in the near future.

    In the non-food segment, fibres became dearer by 56.56 per cent year-on-year, while minerals were up 12.11 per cent.

    Fuel and power became more expensive by 12.46 per cent and petrol by 33.23 per cent on an annual basis during the week under review.

    The government and RBI had said that in the months to come, inflationary pressure would be more from core (non-food) items on account of high global prices of commodities, particularly crude.

    A rise in prices of food items was the main reason for inflationary pressure during 2010. Food inflation was in double digits for most of last year, before showing signs of moderation from March this year.

    Food inflation had fallen to an 18-month low of 7.47 per cent in the first week of May. However, the prospects for a prolonged moderation now seems to have vanished.

    Headline inflation stood at 8.66 per cent in April. The RBI, in its monetary policy for 2011-12, had projected that overall inflation would average 9 per cent during the first half of this fiscal.

    The latest jump in food inflation numbers comes in the wake of a slew of bad news for the economy. GDP growth of the country slowed to a five-quarter low of 7.8 per cent during the January-March quarter, while the six core industries registered meagre 5.2 per cent expansion in April.

    Experts had blamed inflation and the resultant rate hikes by the RBI, which resulted in slowing down of investment, for the poor economic growth numbers.

    The RBI is expected to go for another round of rate hikes at its mid-quarterly review next week.



    Source: Press Trust of India
     
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  5. ALBY

    ALBY Elite Member Elite Member

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    India’s food inflation declines further, still in double digits

    New Delhi: India's food inflation declined for the second consecutive week at 10.39 percent for the week ended Nov 5, but still continued to be in double digits, official data showed Thursday.
    Food inflation had shot up to over double digits as the festive season approached in October, pushing demand higher. For the week under review, prices of vegetables, pulses, eggs and meat were still on the higher side, according to data made available by the commerce and industry ministry.

    for viewing full story
    Manorama Online | India's food inflation declines further, still in double digits
     
  6. agentperry

    agentperry Senior Member Senior Member

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    jsut enlighten me how many of us or in whole india take loans to buy vegetables? hiking loans interest rates are linked to price rise. they hike loan as if now people will be discouraged to buy food items. stupid instead the farmers who take up loan for agricultural purposes will hike the prices of food articles, the food processing industry will increase prices too when the interest rates are increased.

    the text book methods by rbi are limiting one thing and that is not inflation but iip and gdp growth
     
  7. sob

    sob Moderator Moderator

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    Let us not get easily swayed by these figures, for the following reasons-

    1. These are provisional figures. The final figures will be available by end December, and will be at least 100 basis points higher, as recent experience has shown.

    2. This is the rate of change of prices over the corresponding period in the last year. We have to remember that last year also at this time the food inflation was almost in double figures. So in absolute terms we are seeing the doubling of prices in 2 years.

    3. Winter crop is coming into the market and this always dampens the wholesale prices. Out on the street the prices of vegetables and other staples still has not come down.
     
  8. Eiffe

    Eiffe Regular Member

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    This is good news but a lot more still needs to be done.
     
  9. cir

    cir Senior Member Senior Member

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    Consumer Price Index up 0.97% in Oct, food and clothing dearer
    November 18, 2011 13:30 IST

    Costlier food and clothing pushed up the Consumer Price Index (CPI) by 0.97 per cent in October, 2011, with the broad gauge for measuring retail inflation rising to 114.2 points during the month.

    The CPI based on retail prices stood at 113.1 points in September, as per data released by the government on Friday.

    However, actual inflation on the basis of the CPI figures can only be calculated from January, 2012, once the data - which was compiled for the first time at the start of this year - has stabilised.

    At the all-India level, the CPI for 'food, beverages and tobacco' went up by 1.06 per cent to 114.4 points in October from 113.2 points in the previous month.

    The main increase was seen in the prices of vegetables, with the index rising by 2.98 per cent month-on-month to 120.8 points, while the index for milk and milk products went up by 1.52 per cent to 120.4 points.

    In a similar fashion, the index for pulses went up by 1.70 per cent to 101.8 points.


    In October, the CPI for 'clothing, bedding and footwear' stood at 121 points on an all-India basis, as against 119.4 points in September, an increase of 1.34 per cent.

    In addition, prices in the 'fuel and light' segment rose by 0.93 per cent in October vis-a-vis the previous month, with the index inching up to 119.2 points from 118.1 points in September.

    The index for 'Housing' was also up 1.10 per cent month-on-month at 110 points in October in comparison to 108.8 points in September.

    This is the fifth month that housing prices have been factored into the CPI data. However, the data was compiled only for urban areas.

    The government had earlier said that "house rent is negligible for the rural areas" and as such, only urban areas have been taken into account for the index on housing.

    The price of miscellaneous items rose by 0.54 per cent in October vis-a-vis September, as per the CPI data, with the index for this segment rising to 112.1 points on a countrywide basis in the month under review from 111.5 points in the previous month.

    In the official release, the Ministry of Statistics and Programme Implementation (MOSPI) also said that real inflation rate, as calculated on the basis of the CPI data, would be available from January next year.

    "Annual inflation rates would be available at the time of release of indices for January, 2012, when the indices for one year are available," the ministry said.

    Experts also said the index cannot be used yet as a measurement of retail inflation.

    "The trend has to be observed for some more time. It needs time to stabilise," Crisil Chief Economist D K Joshi said.

    Joshi also said calculation of retail price inflation on the basis of the CPI data can take place next year.

    "The government began releasing the nationwide CPI from January this year. It will be only from 2012 that they will be able to calculate the exact retail inflation numbers, as the data needs one full year before it stabilises," he said.

    As per the latest data, the general indices for rural and urban consumers stood at 115.8 points and 112 points, respectively, in October.

    In September, they were recorded at 114.6 points and 111.1 points, respectively, for rural and urban consumers.

    Meanwhile, the overall August CPI reading has been maintained at the provisional estimate of 111.7 points.


    The new nationwide CPI launched earlier this year was introduced to reflect the actual movement of prices at the micro-level and help policymakers like the RBI in better framing of decisions.

    With the passage of time, the government expects it to supersede the Wholesale Price Index (WPI) as the benchmark for measurement of inflation.

    Inflation, as measured by the WPI, stood at 9.73 per cent in October.

    At the time of unveiling the new CPI earlier this year, the government had said it would continue the practice of giving the figures in the present form without quoting the inflation rate for one year.

    These consumer indices include five major groups - food, beverages and tobacco; fuel and light; housing; clothing, bedding and footwear; and miscellaneous items.
     
    Last edited: Nov 18, 2011
  10. sob

    sob Moderator Moderator

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    Why inflation is looking like a lost cause even in 2012 | Firstpost


     
  11. Poseidon

    Poseidon Regular Member

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    Food inflation falls sharply to 8%.

    Food inflation falls sharply to 8%.
    Reuters
    New Delhi, December 01, 2011

    India's food price index rose 8%, at its slowest pace in nearly 4 months, and the fuel price index climbed 15.53% in the year to Nov. 19, government data on Thursday showed.

    In the previous week, annual food and fuel inflation stood at 9.01% and 15.49%, respectively. The
    primary articles price index was up 7.74%, compared with an annual rise of 9.08% a week earlier.

    India's headline inflation has stayed above 9% for the 11th month, despite 13 rate increases by the central bank since March 2010.

    In its October review, the Reserve Bank of India had said if inflationary pressures started to abate by December, more rate increases may not be needed.

    Food inflation falls sharply to 8% - Hindustan Times
     
  12. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    That's what happens when it looks like the world is headed for recession.
     
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  13. Poseidon

    Poseidon Regular Member

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    Food inflation lowest in 40 months.

    Food inflation lowest in 40 months.
    TNN | Dec 8, 2011, 12.10PM IST

    NEW DELHI: India's food inflation plunged sharply to 6.6 per cent for the week ended Novmber 26 as compared to 8 per cent in the previous week as onions, potatos and wheat became cheaper and the rise in the prices of other items moderated on the back of a good monsoon, official data showed Thursday.

    Food inflation has dropped sharply in the last four weeks. It had come down in single digit for the week ended November 12 from 10.63 per cent in the previous week. The headline inflation based on the wholesale price index was recorded at 9.73 per cent in October, according to the latest official data.

    The Reserve Bank of India (RBI) has hiked key policy rates 13 times since the beginning of 2010 to control the price rise.

    Food inflation falls to 6.6% for week ended Nov 26 - The Times of India

    Atleast the GoI is finally successful in controlling food inflation.
     
  14. Param

    Param Senior Member Senior Member

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    That's just an eyewash.

    Food is not a cheaper. I go to eat out , I find the prices increasing every 2 months. 40 months figure is pure BS.
     
  15. Singh

    Singh Phat Cat Administrator

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    Lowest inflation in 40 months means the increase in food prices is the lowest(6.6%) in the last 40 months.
     
  16. Param

    Param Senior Member Senior Member

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    Yeah I understand that.
    I was just angry at the publicity and credit that was being given to the Govt for supposedly containing runaway prices. It doesn't make much of a difference. Since income does not always keep pace with inflation.
     
  17. Poseidon

    Poseidon Regular Member

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    India's per capita income rose to Rs 54k in 2010-11: Government - The Times of India
    When Food inflation rises we blame the GoI & we must; so to be fair we should praise the Goi for decrease in Food inflation.
     
    Last edited: Dec 8, 2011
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  18. Singh

    Singh Phat Cat Administrator

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    In the current global agricultural and economic climate coupled with our fast growth rate, 6.6.% inflation is decent.
     
  19. Param

    Param Senior Member Senior Member

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    The concept of per capita income is the biggest joke.

    In a society with unparalleled economic inequalities, how can the average income of society be taken as a proper statistic?

    A Tycoon's income maybe increasing and hence contributing to higher per capita but that's not the case with some middle class guy or a labourer.
     
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  20. agentperry

    agentperry Senior Member Senior Member

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    base effect or declining rupee? guess the cause?
     
  21. Singh

    Singh Phat Cat Administrator

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    Gini coefficient - Wikipedia, the free encyclopedia

    The economic inequality in India is quite less as compared to the world and developing world in particular. Our huge middle class plays an important role here.

    The juxtaposition, though, is extreme on one hand you have people dying literally of hunger and otoh you have some of the world's richest people. However, statistically we are not that extreme.
     
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