Food price inflation eases to 17.81 per cent, fuel prices up

The annual rate of inflation for food products based on the wholesale price index dropped to 17.81 per cent during the week ended 27 February 2010 even as the hike in excise and customs duties announced in the Budget buoyed fuel prices.

Food inflation stood 0.06 percentage points lower at 17.81 per cent during the week ended 27 February against 17.87 per cent in the previous week.

The wholesale price index of vegetables overall shot up by 15.61 per cent and milk prices were up 15.31 per cent while fruits were dearer by 11.77 per cent.

The index for pulses on an year-on-year basis was 33.38 per cent higher, slightly lower than the over 35 per cent in the previous week, while potatoes turned costlier by 22.46 per cent. Onion prices rose by just 2.98 per cent.

The fuel price index stood 11.38 per cent higher year-on-year during the week ended 27 February compared with the level of 9.59 per cent in the previous week. This has mainly been due to the recent government decision to raise excise and customs duties on fuel.

The index of petrol prices rose 16.82 per cent year-on-year and 6.0 per cent from the previous week.

The overall inflation based on the wholesale price index (WPI) for all commodities is already at 8.56 per cent in January, 0.06 percentage points above the RBI projection of 8.5 per cent for March 2010.