Food price inflation declines further to 16.81 per cent

The annual rate of inflation based on the wholesale price index of food articles (base: 1993-94=100) declined further to 16.81 per cent during the week ended 9 January 2010 from 17.28 per cent during the previous week. Food price inflation stood at 11.59 per cent in the comparable week a year ago (week ended 10 January 2009).

The wholesale price index for the 'food articles' group declined 0.1 per cent to 285.6 (provisional) from 285.8 (provisional) in the previous week due to lower prices of bajra (-4 per cent), tea (-3 per cent), maize (-2 per cent) and arhar and fruits and vegetables (-1 per cent each).  However, the prices of jowar and gram (2 per cent each) and wheat and barley (1 per cent each) moved up.

The wholesale price index for the week ended 9 January 2010 rose 0.4 per cent to 284.6 (provisional) from 283.4 (provisional) for the previous week.

The annual rate of inflation based on the WPI for the primary articles group stood at 13.93 per cent (provisional) during the week ended 9 January 2010 against 13.82 per cent (provisional) during the previous week and 11.87 per cent during the corresponding week of the previous year (ended 1 January 2009).

The index for the 'non-food articles' group rose 1.9 per cent to 257.9 (provisional) from 253.2 (provisional) during the previous week due to higher prices of soyabean (13 per cent), niger seed (5 per cent) and groundnut seed, sugarcane and fodder (2 per cent each). However, the prices of castor seed and linseed (-1 per cent each) declined. 

The index for the `fuel, power, light and lubricants' group rose 0.1 per cent to 350.4 (provisional) from 350.1 (provisional) in the previous week due to higher prices of naphtha (1 per cent). However, the prices of light diesel oil (1 per cent) declined.

The annual rate of inflation for the `fuel, power, light and lubricants' group stood at 6.34 per cent (provisional) during the week ended 9 January 2010 against 6.25 per cent (provisional) during the previous week and (-) 1.41 per cent during the corresponding week of the previous year (ended 1 January 2009).