India’s annual food inflation falls to 13.75 percent

October 28th, 2010 - 2:19 pm ICT by IANS  

New Delhi, Oct 28 (IANS) India’s annual food inflation fell to 13.75 percent for the week ended Oct 16, from 15.53 percent in the previous week. This may provide some relief to consumers.

Official data released Thursday showed the annual inflation rate for the primary articles group dipped to 16.62 percent during the week under review, compared to a rise of 18.05 percent recorded in the week ended Oct 9.

The index for fuels moved up slightly to 11.25 percent for the week ended Oct 16, as against 11.14 percent in the previous week.

The barometer for food prices had been hovering at higher levels for the past few weeks. The slip comes as food supplies improved after the monsoon rains. Analysts say a good Rabi crop may further reduce food inflation.

The Reserve Bank of India (RBI) will review its monetary policy Nov 2. If the dip in inflation continues, it might just hold off another round of interest rate hikes.

High inflation was the primary reason cited by the central bank to take a hawkish view on interest rates.

The RBI hiked its short-term borrowing and lending rates by 50 basis points and 25 basis points respectively in September.

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: 4.97 percent

Rice: 3.49 percent

Wheat: 6.56 percent

Pulses: 4.16 percent

Vegetables: (-) 0.77 percent

Fruits: 16.06 percent

Milk: 21.65 percent

Potatoes: (-)49.69 percent

Onions: (-) 6.93 percent

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