Food inflation gaining new heights

Food inflation has been gaining new heights just two weeks ahead of the announcement of next year's budget, and prices of almost all kitchen items, including flour despite bumper wheat production of 23 million tons, have increased.
The Federal Bureau of Statistic has recorded SPI 8.99 percent higher for the week ending May 31, as compared to the corresponding week of last year, and 1.27 percent higher between May 17 and 31. The FBS had not released data for week ending on May 24, probably because of the ongoing price increase of essential items.
However, increase in Sensitive Price Indicator (SPI) from 7.24 percent on May 17 to 8.99 percent on May 31, 2007 reflected inflationary trend in food items during last two weeks. The prices of food items, including flour, milk, cooking oil, ghee, vegetable and soap have increased substantially.
Despite the bumper wheat harvest of over 23 million tons, flour prices are on the rise and during last week (for which SPI was not issued) increased by Rs 3/kg in Sindh, Balochistan and NWFP and Re 1 in Punjab province.
When approached Monopoly Control Authority investigation officer Javed Qaiser said that the decision whether or not to take up the issue would be taken on Monday when full administration of the Authority would be in place. At present, he said, the Authority's Chairman and one member are abroad. MCA Chairman Khalid Aziz Mirza would be returning on Monday, he added.
According to market sources tetra pack milk marketing companies have increased milk price by Rs 4/litre and some of them are not even bringing their product in the market, while the prices of dry milk were raised by companies in March 2007 to Rs 295 per kg from Rs 260.
Meanwhile, SPI compiled and released by the FBS year-on-year of 53 essential commodities highlighted vulnerability of people earning between Rs 3,000 and Rs 12,000, totally helpless against food inflation. The prices of 19 items registered increase while 10 posted decrease, during the week, and 26 remained unchanged, but were still much expensive as compared to last year.
Tomatoes price increased 23.37 percent against previous week while egg hen (farm) increased by 8.69 percent, rice Basmati broken 6.57 percent, rice Irri-6 5.57 percent, potatoes 5.20 percent, vegetable ghee 2.5 kg 4.93 percent, cooking oil 4.69 percent. Besides, prices of many other commodities were being increased, for reason unknown.