India's food price inflation eases to 9.55 per cent

Food price inflation in the country stood lower at 9.55 per cent year-on-year during the week ended 27 August 2011, against a five-year high of 10.05 per cent in the previous week, despite a firm trend in the prices of almost all essential commodities.

Food price inflation based on the wholesale price index stood at 14.76 per cent in the corresponding week of the previous year.

Build-up of inflation during the financial year (beginning 1 April 2011) was 8.93 per cent against 8.33 per cent during the comparable week of the previous year.

The index for the 'food articles' group rose 0.1 per cent to 195.1 (provisional) during the week ended 27 April 2011 from 195.0 (provisional) in the previous week due to higher prices of poultry chicken (up 3 per cent), moong (up 2 per cent) and masur, urad, gram, bajra, arhar, fruits and vegetables, fish-fresh water and condiments and spices (up 1 per cent each). However, the prices of fish-marine and tea (down 4 per cent each), maize, pork and ragi (down 2 per cent each) and barley (down 1 per cent) declined.

Inflation rate for the `non-food articles' group, however, rose to 19.88 per cent during the week ended 27 August 2011 from 16.23 per cent during the previous week. It was 14.10 per cent during the similar week of the previous year.

Build-up of inflation for the group during the financial year (beginning 1 April 2011) was -4.38 per cent against 1.53 per cent during the comparable week of the previous year.