Food inflation in single digits | business | Hindustan Times
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Food inflation in single digits

business Updated: Jul 30, 2010 01:07 IST
HT Correspondent

India's annual food inflation rate cooled to single digits at 9.67 per cent for the week-ended July 17 for the first time this year. But it doesn't mean prices have fallen sharply.

Food inflation stayed above 16 per cent for most part of the last few months before beginning to ease since mid-June.

Economists, however, clarified that falling inflation rate does not mean falling prices, it only implies that prices are rising at a slower pace.

Chief economic advisor Kaushik Basu said inflation might remain high for the next two months, after which it would come down "gently".

Much still depends on an adequate monsoon. The Met department has forecast normal rains, crucial for the summer-sown crop.