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FARMING SEASON PUSHES FOOD INFLATION TO 12.9%

By NBF News
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Food inflation rose to 12.9 per cent in May 2012 from 11.9 per cent in April, on the heels of persistent increase in the prices of some farm produce due to the farming season, even as consumer inflation eased slightly to 12.7 per cent year-on-year in May, from 12.9 percent in April.

Statistics released by the National Bureau for Statistics (NBS) yesterday, indicated that the rise in the food index was mainly from increase in the prices of vegetables, potatoes, yam and other tubers, and bread and cereals.

'The high year-on-year change could be partly attributable to persistent increases in the prices of some farm produce due to the farming season, for example vegetables which are typically in short supply at this time of the year,' the NBS report said.

Farm produce prices have been higher as stocks have been drawn down from earlier harvests and farmers are in the peak of the farming season, using up part of their stocks in the farming process. The average annual rate of rise of the index remained at 10.4 per cent (y/y) for the twelve-month period ending May 2012.

Food inflation rose sharply to 12.9 per cent year-on-year in May, from 11.2 per cent the previous month, the National Bureau of Statistics (NBS) report said on Tuesday.

The urban inflation rate was 14.1 per cent year-on-year while the urban All Items index increased by 0.8 per cent on a month-on-month basis while the rural inflation rate was 11.7 per cent for May 2012 while the rural All Items index increased by 0.7 per cent compared with the preceding month, the NBS report said.