Axis Bank economist Saugata Bhattacharya said the nature of persistence of higher food prices is worrying. " I expect wholesale price inflation to rise between seven and eight per cent by March- end," he said.

Among other items urad and poultry chicken prices rose by 15 per cent each, eggs by eight per cent, moong by six per

cent, arhar by five per cent.

Chicken and egg prices have shot up as poultry feed has become more expensive on the back of high maize prices which has led to farms reducing production.

The overall rate of inflation based on wholesale prices had remained in the negative zone for 13 straight months before turning positive in the first week of September due to rising food prices.

Primary articles which include food articles and other raw materials carry a weight of

22.02 per cent in the overall index of inflation.

To add to consumer woes sugar is also being sold at Rs 40 per kg now whereas it was being sold at Rs 17 last year.

Figures available with the agricultural ministry show a drop in the acreage under sugarcane apart from which the weak monsoon is also expected to have an adverse impact on the yield. This means sugarmills will not have enough cane to crush as a result of which sugar production will take a hit this year as well. Some economists fear that the Reserve Bank of India ( RBI) may go in for a tight monetary policy to control the rate of inflation which in turn may choke growth.