Food price inflation fractionally lower at 16.24 per cent

The inflation rate based on the wholesale price index of food articles in the country stood at 16.24 per cent (provisional) during the week ended 25 September 2010, slightly lower than the 16.44 per cent (provisional) recorded in the previous week, even as prices of essential items continued to remain firm.

The slight dip in the rate of inflation was due to lower prices of moong (-3 per cent), fish, masur and gram (-2 per cent each) and maize and wheat (-1 per cent each).

Food price inflation stood at 12.85 per cent in the comparable week a year ago (week ended 26 September 2009).

Build-up of food price inflation so far during the financial year (beginning 1 April 2010) was 9.31 per cent (provisional) against 13.93 per cent in the corresponding week of the previous year.

The index for the 'food articles' group declined 0.1 per cent to 179.7 (provisional) from 179.9 (provisional) in the previous week due to lower prices of moong (-3 per cent), fish, masur and gram (-2 per cent each) and maize and wheat (-1 per cent each). However, the prices of jowar and ragi (2 per cent each) and barley, beef and buffalo meat, fruits and vegetables, tea and urad (1 per cent each) moved up.

Inflation rate based on the wholesale price index of non-food articles jumped to 22.21 per cent (provisional) during the week ended 25 September 2010 from 20.21 per cent (provisional) during the previous week.