Food price inflation hits a low of 0.42 per cent

Food price inflation in India hit a low of 0.42 per cent year-on-year during the week ended 17 December 2011 against 1.81 per cent in the previous week, official data released today showed.

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

However, the annual inflation rate for pulses was close to 15 per cent while milk and poultry products recorded over 11 per cent inflation during the week.

Build-up of inflation so far during the financial year was 6.25 per cent against 15.27 per cent in the comparable period of the previous year. Food price inflation stood at 15.48 per cent during the comparable period of the previous year.

The index for the 'food articles' group declined 0.4 per cent to 190.3 (provisional) during the week ended 17 December 2011 from 191.0 (provisional) during the previous week. During the week, prices of fruits and vegetables (down 4 per cent), jowar (down 3 per cent), tea and arhar (down 2 per cent each) and ragi, urad and condiments and spices (down 1 per cent each) declined. However, the prices of fish-marine (up 7 per cent), poultry chicken (up 2 per cent) and moong, masur, maize, fish-inland and bajra (up 1 per cent each) moved up.

Inflation rate for the non-food articles group declined to 0.28 per cent during the week ended 17 December 2011. It was 26.05 per cent during the comparable week of the previous year.