Food inflation falls to 7.78%
Food inflation fell to a one-and-a-half month low of 7.78% for the week ended June 18 on the back of cheaper vegetables, pulses and potatoes.business Updated: Jun 30, 2011 12:45 IST
Food inflation fell to a one-and-a-half month low of 7.78% for the week ended June 18 on the back of cheaper vegetables, pulses and potatoes.
Food inflation, as measured by the Wholesale Price Index (WPI), stood at 9.13% during the previous week. It was over 20% during the comparable period of June, 2010.
As per data released by the government today, vegetables became over 10% cheaper year-on-year during the seven-day period under review.
Prices of pulses also went down by 9.50% during the week ended June 18, while potatoes became 2.39% cheaper on an annual basis.
However, prices of other food items remained high during the week.
The latest numbers on price rise of food items are the lowest since the week ended May 7, when food inflation stood at 7.47%.
It comes a day after Prime Minister Manmohan Singh said that inflation will come down to 6.5% by March-end if international oil prices soften and commodity prices do not rise further.
Headline inflation in the country stood at 9.06% in May.
The latest week-on-week fall of 1.35 percentage points in food inflation is the sharpest in four-and-half months. The previous record of a decline of over 2 percentage points had happened in the first week of February.
Meanwhile, inflation in overall primary articles stood at 11.84% for the week ended June 18, down from 12.62% in the previous week. Primary articles have a share of over 20% in the WPI basket.