India's food price inflation declines to 11.81 per cent

The annual rate of inflation based on food prices in India declined to 11.81 per cent during the week ended 29 October 2011, breaking an upward spiral that pushed the wholesale price-based index to a 9-month high of 12.21 per cent in the previous week. Food inflation in the country stood at 12.68 per cent during the comparable week of the previous year.

Build-up of food inflation so far during the financial year (beginning 1 April 2011) was 12.62 per cent against 9.73 per cent during the similar period of the previous year.

The index for the 'food articles' group declined 0.2 per cent to 201.7 (provisional) during the week ended 29 October 2011 from 202.2 (provisional) in the previous week due to lower prices of fish (down 3 per cent), bajra (down 2 per cent) and fruits and vegetables, moong and condiments and spices (down 1 per cent each). However, the prices of gram, egg, fish-marine, ragi and poultry chicken (up 2 per cent each) and maize, urad and tea (up 1 per cent each) moved up.

Inflation rate for the non-food articles group was lower at 5.41 per cent during the week ended 29 October 2011 against 6.43 per cent during the previous week. It was 24.29 per cent during the comparable week of the previous year.

Build-up of inflation for the group so far during the year (beginning 1 April 2011) was (-) 7.41 per cent against 10.76 per cent in the year-before week.

The index for the 'non-food articles' group rose 0.2 per cent to 177.5 (provisional) during the week ended 29 October 2011 from 177.2  (provisional) during the previous week due to higher prices of flowers (up 7 per cent), gaur seed (up 4 per cent), rape and mustard seed (up 2 per cent) and sunflower, raw rubber and raw jute (up 1 per cent each). However, the prices of groundnut (down 3 per cent), coir fibre, linseed, raw silk and niger seed (down 2 per cent each) and copra, gingelly seed and castor seed (down 1 per cent each) declined.