Food inflation at 7-week low of 7.61% in June
Food inflation in the country fell to a seven-week low of 7.61 per cent for the week ended June 25 on the back of cheaper vegetables, pulses and potatoes.
July 07, 2011 / 15:04 IST
Food inflation in the country fell to a seven-week low of 7.61 per cent for the week ended June 25 on the back of cheaper vegetables, pulses and potatoes.
Food inflation, as measured by the Wholesale Price Index (WPI), stood at 7.78% during the previous week. It was almost 20% during the comparable period of June, 2010.As per data released by the government today, pulses became over 9% cheaper year-on-year during the period under review. Prices of vegetables also came down by 8.74%, while potatoes became 2.13% heaper on an annual
basis.However, prices of other food items remained high during the week. Fruits became 22.75% more expensive, while onions became dearer by 21.24% year-on-year.Eggs, meat and fish prices were up by 10.12% and cereals by 4.26%. Milk was 12.10% costlier on an annual basis. The latest numbers on the rate of price rise of food items are the lowest since the week ended May 7, when food
inflation stood at 7.47%.Headline inflation in the country stood at 9.06% in May. Finance Minister Pranab Mukherjee had yesterday cautioned against the "suppressed component" of inflation."There is a significant suppressed component of inflation as the increase in international crude oil prices has not been passed on completely despite increase in domestic administered oil prices effected in June, 2010, and June, 2011," he said.Meanwhile, inflation in overall primary articles stood at 11.56% for the week ended June 25, down from 11.84% in the previous week. Primary articles have a share of over 20% in the WPI basket.Inflation of non-food primary items stood at 17.69%, down from 17.91% in the previous week. However, the hike in prices of diesel, cooking gas and kerosene announced on June 24 week by the government is yet to be reflected in these numbers.The only exception was LPG, which became dearer by 14.58%. The inflation index for LPG stood at 11.31% during last few weeks. Fibres were up 38.05% on an annual basis, while minerals became more expensive by 27.87%.Fuel and power became more expensive by 12.67% year-on-year. The RBI had said that headline inflation in the next few months would be driven more by high global commodity prices, rather than prices of food items, as was the case in 2010.Food inflation was in double digits for most of 2010, before showing signs of moderation since March this year. The fall in food inflation numbers is likely to come as a relief to the government, which had to deal with a series of
bad news during recent weeks on the economic front.While January-March economic growth stood at 7.8%, the lowest in five quarters, industrial output also slowed down to 6.3% in April. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
