Pulses, potatoes, milk keep food inflation up

New Delhi, March 11 (IANS) India's annual food inflation based on wholesale prices stood at 17.81 percent for the week ended Feb 27 mainly on account of higher prices of pulses, potatoes and milk, official data showed Thursday.

The annual food inflation had risen from 17.87 percent for the week ended Feb 20 from 17.58 percent for the week before, as per the limited monthly data on the wholesale price indedx released by commerce and industry ministry.

Prime Minister Manmohan Singh had told both houses of parliament last week that taming inflation was a major concern for the government and high food prices was more to do with supply-side constraints.

"I will be the last one to deny that the behaviour of food prices in the last one year is something which does not worry us," the prime minister told the Lok Sabha, the lower house of parliament.

"The house has my assurance that if any practical method can further bring relief to our people, our government will always be sensitive to the concerns of the members," he said speaking on the motion of thanks on president's address.

"To put matters in perspective, it is important to recognize that in 2009 we have had one of the most severe droughts in recent history -- the worst since 1972," said the prime minister.

"As a result, production of foodgrain, pulses and oilseeds has been adversely affected. Production of sugarcane has also gone down. This was preceded by the economic slowdown, to respond to which the government had to stimulate demand."

Planning Commission Deputy Chairman Montek Singh Ahluwalia, nevertheless , feels prices will be brought under control soon. "I expect food and aggregate inflation to trend down over the next two months," he said earlier this week.

Following are price increases of some essential food items over the 52-week period:

- Pulses: 33.38 percent

- Potatoes: 22.46 percent

- Vegetables: 15.61 percent

- Milk: 15.31 percent

- Wheat: 14.34 percent

- Cereals: 11.53 percent

- Onions: 2.98 percent

- Fruits: 11.77 percent

- Rice: 9.38 percent