Role of food prices in the high inflation experience of recent years  Headline inflation measured by the new CPI has remained in double digits during April 2012 to January 2014, averaging 10 per cent over this period. Food inflation, which has a weight of 47.6 per cent in the index, has contributed the largest share of headline inflation (Chart 1).
Food inflation itself has stayed in double digits throughout this period, edging down to 9.9 per cent only in January 2014. 2. Why are food prices high? Although domestic production has increased steadily, barring reversals in 2009–10 and 2012–13, this has not been reflected in a softening of food prices. Let us try and understand why.