Food price inflation a tad lower at 16.23 per cent

The annual rate of inflation based on the wholesale price index of food articles edged lower to 16.23 per cent during the week ended 15 May 2010 from 16.49 per cent during the previous week.

The slight fall in inflation was due mainly to lower prices of masur (-4 per cent), fruits and vegetables (-2 per cent).

Food price inflation stood at 8.79 per cent in the comparable week a year ago (week ended 9 May 2009).

The build-up of food price inflation so far during the financial year (beginning 1 April 2010) was lower at 2.13 per cent during the week under review against 2.30 per cent in the previous week but lower than the 3.48 per cent level of the corresponding week of the previous year.

The index for the 'food articles' group declined 0.1 per cent to 293.6 (provisional) from 293.9 (provisional) in the previous week, mainly due to lower prices of masur (-4 per cent), fruits and vegetables (-2 per cent). However, the prices of tea (9 per cent), mutton (5 per cent) and urad and condiments and spices (1 per cent each) moved up.

The index for the 'food articles' group declined marginally to 293.9 (provisional) from 294.0 (provisional) for the previous week due to lower prices of wheat (-2 per cent) and fish-inland, maize and gram (-1 per cent each). However, the prices of urad and moong (2 per cent each) and fruits and vegetables and tea (1 per cent each) moved up.