Food inflation falls to single digits at 9.67 percent

July 29th, 2010 - 2:40 pm ICT by IANS  

New Delhi, July 29 (IANS) For the first time this year, India’s annual food inflation eased to single digits at 9.67 percent for the week ended July 17, from 12.47 percent a week earlier, providing relief to an embattled government facing a united opposition attack on rising prices.
Food inflation had remained above the 16 percent level for most part of the last year, before falling to below 13 percent since mid-June.

Official data released Thursday showed the decline was mainly due to the fall in prices of vegetables, especially potatoes and onions.

The fuel prices index, however, rose to 14.29 percent reflecting the government’s decision to raise prices of petrol, diesel, kerosene and cooking gas in the last week of June.

The primary articles index rose slower pace at 14.5 percent, compared to the previous week’s increase of 16.48 percent.

Following are the rise and fall in prices of some of the main commodities that form the sub-index for food articles over the past 52 weeks:

Cereals: 5.62 percent

Rice: 5.31 percent

Wheat: 6.27 percent

Pulses: 21.23 percent

Vegetables: (-)14.77 percent

Fruits: 12.14 percent

Milk: 19.03 percent

Potatoes: (-)46.05 percent

Onions: (-)10.25 percent

Wholesale price inflation, the measure for overall increase in prices, was at 10.55 percent in June.

Earlier this week, the Reserve Bank of India raised key short-term interest rates to deal with high inflation and indicated that it would continue with monetary tightening measure till inflation is brought under control.

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