Food price inflation eases to 12.92 per cent

The annual rate of inflation based on the wholesale price index of food articles in the country eased to 12.92 per cent in the week ended 19 June 2010 from the previous week's high of 16.90 per cent.

The decline in inflation was due mainly to lower prices of bajra (-6 per cent), coffee (-3 per cent) and moong and gram (-1 per cent each).

Food price inflation stood at 12.57 per cent in the comparable week a year ago (week ended 20 June 2009).

The build-up of food price inflation so far during the financial year (beginning 1 April 2010) stood at 2.92 per cent against a negative (-) 2.21 per cent in the previous week and 7.50 per cent in the corresponding week of the previous year.

The index for the 'food articles' group rose 0.3 per cent to 296.3 (provisional) from 295.3 (provisional) in the previous week due to higher prices of fruits and vegetables (2 per cent) and maize and urad (1 per cent each). However, the prices of bajra (-6 per cent), coffee (-3 per cent) and moong and gram (-1 per cent each) declined.

Inflation rate based on the wholesale price index of non-food articles declined to 15.91 per cent during the week ended 19 June 2010 from 18.86 per cent during the previous week, easing the pressure on the Reserve Bank of India to act. Inflation rate for the group stood at 9.51 per cent in the comparable week of the previous year.