Food inflation eases a tad to 10.35 percent

By IANS,

New Delhi : India’s food inflation eased to 10.35 percent for the week ended Aug 7 from 11.4 percent a week earlier, official data released Thursday showed.


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The easing in prices of some pulses, and a sharp drop in prices of vegetables, potatoes, and onions helped temper the overall food index.

The fuel prices index, continued with its declining trend, dropping to 12.57 percent in the week under review as against 12.66 percent recorded in the previous week, data released by the commerce ministry showed.

The primary articles index also rose at a slower rate at 14.85 percent, compared to the previous week’s increase of 15.66 percent.

Following are the rise and fall in prices of some of the main commodities that form the sub-index for food articles over the past 52 weeks:

Cereals: 7.4 percent

Rice: 8.27 percent

Wheat: 7.63 percent

Pulses: 18.32 percent

Vegetables: (-) 22.12 percent

Fruits: 16.74 percent

Milk: 19.03 percent

Potatoes: (-) 49.81 percent

Onions: (-) 6.91 percent

According to recently released figures, wholesale price inflation, the measure for overall increase in prices, was at 9.97 percent in July.

The rise in inflation has forced the Reserve Bank of India grow increasingly hawkish in its monetary policy action. It had raised key interest rates by 25 basis points in its quarterly review in June.

The still high inflation could force another hike, something that the central bank has said it would not shy away from.

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