Food Inflation Slips to Four-Month Low of 9.01 Percent


New Delhi: Food inflation fell to nearly four-month low of 9.01 percent for the week ended November 12, prompting Indian Finance Minister Pranab Mukherjee to express the hope that the overall price situation will improve in the coming weeks. Food inflation, measured by the Wholesale Price Index (WPI), was 10.63 percent in the previous week. It was 11.38 per cent in the corresponding period in 2010. "If these trends continue for the next two weeks for the month of November, I hope there will be moderation in inflation and it will have an impact on the year-end inflationary figures," Mukherjee told reporters here. According to the data on food inflation, onions became cheaper by 32.85 percent year-on-year, while potato prices were down by 7.23. Price of wheat also fell by 3.09 percent. "Normally, I do not have much confidence in the weekly figures. But if the trend continues, let us hope for the best," the Finance Minister said. This is the lowest rate of food inflation since the week ended July 23 when it stood at 8.43 percent. Besides, the latest numbers also mark a climb-down of the food inflation to single-digit after a gap of five weeks. Experts attributed the fall to the easing of demand after the festive season and also to the "high base" of over 11 per cent in the same period last year. "The decline in the price levels of some categories of food items is in line with our expectation that prices would decline reflecting an easing of demand pressures after the festive season," ICRA Economist Aditi Nayar said. However, barring onions, potatoes and wheat, all other food items became expensive on an annual basis during the week under review.
Source: PTI