Food price inflation declines to 18.65 per cent

The annual rate of inflation based on the wholesale price index of food articles (base: 1993-94=100) declined to 18.65 per cent during the week ended 12 December 2009 from 19.95 per cent in the previous week. Food price inflation stood at 10.69 per cent in the comparable week a year ago (week ended 13 December 2008).

The index for the `food articles' group declined by 1.2 per cent to 288.8 (provisional) from 292.2 (provisional) in the previous week due to lower prices of wheat (-5 per cent), bajra (-4 per cent), fruits and vegetables and barley (-2 per cent each) and rice, condiments and spices, tea, masur and maize (-1 per cent each). However, the prices of moong (2 per cent) and jowar (1 per cent) moved up.

The index for the `non-food articles' group rose 2.4 per cent to 250.7 (provisional) from 244.8 (provisional) in the previous week due to higher prices of tobacco (33 per cent), raw cotton (6 per cent), raw rubber (4 per cent), fodder and copra (3 per cent each) and raw jute, groundnut seed and logs and timber (1 per cent each). However, the prices of raw silk (-2 per cent) declined.

The inflation rate for the `primary articles' group, which also includes the food articles group, stood at 14.66 per cent (provisional) during the week ended 5 December 2009 against 14.98 per cent (provisional) for the previous week and 11.75 per cent during the corresponding week of the previous year (ended 13 December 2008).

The index for the primary articles group as a whole declined 0.3 per cent to 284.7 (provisional) from 285.5 (provisional) in the previous week.

The index for the `fuel, power, light and lubricants' group and the annual rate of inflation based on the index remained unchanged at their provisional level of 344.9 and 3.95 per cent respectively. The rate of inflation based on the `fuel, power, light and lubricants' group was (-) 0.27 per cent during the corresponding week of the previous year (ended 13 December 2008).