Food inflation drops for the second week

July 7th, 2011 - 2:14 pm ICT by IANS  

New Delhi, July 7 (IANS) Food inflation declined for the second week in a row to 7.61 percent for the week ended June 25 from 7.78 percent in the previous week as vegetables and pulses became cheaper, official data showed Thursday.

The food inflation had declined sharply to 7.78 percent for the week ended June 18 after surging to a two-month high of 9.13 percent in the previous week.

Vegetables became cheaper by 8.74 percent and prices of pulses declined 9.01 percent year-on-year in the week under review.

The primary articles index declined to 11.56 percent for the week ended June 25 from 11.84 percent in the previous week and 12.62 percent two weeks ago, according to data released by the ministry of commerce and industry.

The index for fuels and power, which has 14.91 percent weight in the wholesale price index, also declined to 12.67 percent for the week under review from 12.98 percent in the previous week.

The decline in food inflation could come as a respite to consumers and policymakers. The Reserve Bank of India has adopted an aggressive monetary tightening policy to curb inflationary pressure. However, inflation remains much above the comfort level despite the 10-time rate hike in the last 15 months by the central bank.

The headline inflation based on wholesale prices rose to 9.06 percent in May.

The following are the yearly rise and fall in prices of some main commodities that form the sub-index for food articles:

Onions: 21.24 percent

Vegetables: (-) 8.74 percent

Fruits: 22.74 percent

Potatoes: (-) 2.13 percent

Eggs, meat, fish: 10.12 percent

Cereals: 4.26 percent

Rice: 1.52 percent

Wheat: 0.42 percent

Pulses: (-) 9.01 percent

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