Food price inflation declines to 16.61 per cent

The annual rate of inflation based on the wholesale price index of food articles declined to 16.61 per cent during the week ended 17 April 2010 from 17.65 per cent in the previous week.

The decline in inflation was due mainly to lower prices of masur dal, fruits and vegetables and jowar.

Food price inflation stood at 8.56 per cent in the comparable week a year ago (week ended 18 April 2009).

The build-up of food price inflation so far during the financial year (beginning 1 April 2010) was marginally lower at 1.88 per cent against 2.83 per cent during the comparable period of the previous year.

The index for the 'food articles' group declined 0.2 per cent to 292.7 (provisional) from 293.3 (provisional) in the previous week due to lower prices of masur, fruits and vegetables and jowar (-2 per cent each) and wheat (-1 per cent). However, the prices of moong (4 per cent), urad and fish-inland (3 per cent each) and arhar, condiments and spices, rice, maize, gram and bajra (1 per cent each) moved up.

The inflation rate based on the wholesale price index of non-food articles for the week ended 3 April 2010 was higher at 10.61 per cent during the week against 10.23 per cent during the previous week and 2.15 per cent in the comparable week of the previous year.