Food price inflation falls to a 20-month low of 7.33 per cent

Food price inflation in the country based on the wholesale price index of food articles in the country hit a 20-moth low of 7.33 per cent during the week ended 17 July 2011 - the slowest pace since February 2009 - against 7.58 per cent in the previous week.

It was 18.56 per cent during the comparable week of the previous year.

The decline in food price inflation has been due mainly to a decline in the prices of pulses, milk, meat and fish.

Build-up of inflation during the financial year beginning 1 April 2011 was 7.93 per cent against 9.55 per cent during the comparable week of the previous year.

The index for the 'food articles' group rose 0.8 per cent to 193.3 (provisional) during the week ended 16 July 2011 from 191.7 (provisional) in the previous week, due to higher prices of fish, fruits and vegetables and fish (up 2 per cent each) and bajra, gram, condiments and spices, rice and tea (up 1 per cent each).

However, the prices of jowar (down 4 per cent), ragi and poultry chicken (down 2 per cent each) and masur, arhar and egg (down 1 per cent each) declined.