Food price inflation falls further to -1.03 per cent

Food price inflation in India stood at (-)1.03 per cent during the week ended 14 January 2011 against (-) 0.42 per cent during the previous week as the food price index continued its negative growth for the fourth successive week.

The decline in the wholesale price-based inflation rate was aided by lower prices of vegetables, following an increase in supplies of seasonal vegetables.

Although prices of most other essential commodities continue to rule high, the decline in inflation rate has helped the Reserve Bank of India (RBI) to inject fresh liquidity into the system so as to cool the credit market.

Food price inflation in the country stood at 17.14 per cent during the comparable period of the previous year. Build-up of inflation so far during the financial year was 6.87 per cent against 17.64 per cent in the comparable period of the previous year.

The index for the 'food articles' group rose 0.3 per cent to 191.4 (provisional) during the week from 190.9 (provisional) during the previous week.

During the week, prices of bajra rose 4 per cent while sea fish and jowar were costlier by 3 per cent each, ragi and barley up 2 per cent each and wheat, maize and milk prices up 1 per cent each. However, the prices of fruits and vegetables, egg, gram, moong and condiments and spices where down 1 per cent each.