Food price inflation falls to 12.47 per cent

The annual rate of inflation based on the wholesale price index of food articles in the country declined again to hit 12.47 per cent during the week ended 10 July 2010, against 12.81 per cent in the previous week.

Food price inflation stood at 11.93 per cent in the comparable week a year ago (week ended 11 July 2009).

The fall in inflation rate during the week was due mainly to falling prices of moong (-3 per cent) and fish (marine), maize and arhar (-1 per cent each).

The build-up of food price inflation so far during the financial year (beginning 1 April 2010) also stood at 2.24 per cent against 2.74 per cent in the previous week. It was 4.88 per cent in the corresponding week of the previous year.

The index for the 'food articles' group rose 0.6 per cent to 297.6 (provisional) from 295.8 (provisional) in the previous week due to higher prices of poultry chicken (6 per cent), condiments and spices (3 per cent) and milk, gram, fish-inland and fruits and vegetables (1 per cent each).  However, the prices of moong (-3 per cent) and fish (marine), maize and arhar (-1 per cent each) declined.

Inflation rate based on the wholesale price index of non-food articles, however shot up to 20.75 per cent during the week ended 10 July 2010 from 18.85 per cent during the previous week. Inflation rate for the group stood at a negative (-)2.57 per cent in the comparable week of the previous year.