Food inflation comes down sharply (Lead)
June 30th, 2011 - 5:56 pm ICT by IANS
New Delhi, June 30 (IANS) In what could come as a respite to consumers and policymakers, India’s food inflation slipped to 7.78 percent for the week ending June 18, compared to 9.13 percent recorded in the previous week, official data showed Thursday.
Food inflation had risen to a two-month high last week.
As per data released by the commerce and industry ministry, the primary articles index fell to 11.84 percent compared to 12.62 percent in the previous week.
“Food inflation for the week-ended 18th June moderated to 7.8 percent year-on-year from 9.13 percent. The favourable base effect is helped by some week-over-week fall in prices of potatoes and rice,” said Jay Shankar, chief economist - director with Religare Capital Markets Ltd.
The index for fuels and power, however, rose to 12.98 percent.
The dip in the food inflation figures should give some assurance to the Reserve Bank of India which has been hiking interest rates consistently since March 2010 to bring down prices, the latest being in June.
At the retail level, however, consumers are still paying higher for their daily needs.
“Every thing has become costly. Milk, eggs, fruits all that we need daily has become quite costly. Tomato prices have especially gone up in the last week,” said Poornima Dayal a home maker from Vasant Kunj in South Delhi.
Last data for headline inflation showed the whole sale price index rising by 9.06 percent in May.
In an interaction with editors of select publications Wednesday Prime Minister Manmohan Singh said inflation would come to 6.5 percent by the end of the current fiscal if international oil prices soften and commodity prices do not rise further.
The following are the yearly rise and fall in prices of some main commodities that form the sub-index for food articles:
Onions: 16.08 percent
Vegetables: (-) 10.08 percent
Fruits: 24.76 percent
Potatoes: (-) 2.39 percent
Eggs, meat, fish: 10.32 percent
Cereals: 4.76 percent
Rice: 2.01 percent
Wheat: 0.24 percent
Pulses: (-) 9.5 percent
- Food inflation is down sharply - Jun 30, 2011
- Food inflation climbs to 9.13 percent - Jun 23, 2011
- Food inflation drops for the second week - Jul 07, 2011
- Food inflation at 10-week high; Pranab terms it unacceptable (Lead) - Jun 23, 2011
- Food inflation rises to 9.13 percent - Sep 29, 2011
- Food inflation rises marginally to 8.76 percent - Apr 28, 2011
- Food inflation rises 9.41 percent; Pranab expresses concern - Oct 07, 2011
- India's food inflation declines - Jul 21, 2011
- Food inflation falls a bit - Jun 02, 2011
- Food inflation dips to six-year low, relief for consumer (Second Lead) - Dec 29, 2011
- Food inflation dips to 0.42 percent; WPI may fall to 6 percent: Pranab (Lead) - Dec 29, 2011
- Food inflation dips to 0.42 percent - Dec 29, 2011
- Food inflation slips marginally, still above comfort level - Oct 13, 2011
- Food inflation rises after three weeks of decline - Mar 24, 2011
- Food inflation up; fruits, meat costlier - Apr 21, 2011
Tags: articles index, bank of india, capital markets ltd, chief economist, commodity prices, food articles, headline inflation, industry ministry, inflation figures, international oil prices, manmohan, manmohan singh, prime minister manmohan, prime minister manmohan singh, reserve bank of india, retail level, select publications, south delhi, week ending june, whole sale