Food inflation fell for the second week in a row, declining to 15.52% for the week ended January 8, but hardly brought any cheer for the common man and the government’s policy-makers as the prices of staple vegetables remained at elevated levels.
“These are weekly fluctuation and naturally we shall have to watch the situation. Some of the vegetable prices are still high,” finance minister Pranab Mukherjee said.
“Though it is not much consolation but declining trend is there.” Vegetable prices went up by 65.39%, while fruits became costlier by 15.91%, prices of milk rose by 13.27% and egg, meat and fish by 12.94%. Now, policy-makers and industrialists will be keenly watching the RBI move in its quarterly policy review later this month.