Food inflation drops to 6.6 percent

By IANS,

New Delhi : India’s food inflation fell sharply to 6.60 percent for the week ended Nov 26 as compared to 8 percent in the previous week as onion, potato, vegetables and wheat became cheaper, official data showed Thursday.


Support TwoCircles

Food inflation has dropped sharply in the last one month giving the much needed relief to common people and the policymakers who have been struggling for almost the last two years to control the general price rise.

Onion became cheaper by 39.20 percent during the week under review, while price of potatoes declined by 15.75 percent. Wheat became cheaper by 4.70 percent year-on-year and price of vegetables dropped by 1.25 percent, according to data released by the commerce and industry ministry.

The primary articles index, which has a 20.12 percent weightage in the wholesale price index, dropped to 6.92 percent for the week under review as compared to 7.74 percent in the previous week. It as at 10.39 percent for the week ended Nov 5.

The fuel and power index remained unchanged at 15.53 percent.

The headline inflation based on the wholesale price index was recorded at 9.73 percent in October, according to the latest official data.

The Reserve Bank of India (RBI) has hiked key policy rates 13 times since the beginning of 2010 to control the price rise. The recent decline in inflationary pressure may give some comfort to the economic policymakers who have been struggling to control the price rise for the last two years, without much success.

The following are the yearly rise and fall in prices in the week under review of some main commodities that form the sub-index for food articles:

Onions: (-) 39.20 percent

Vegetables: (-) 1.25 percent

Fruits: 10.72 percent

Potatoes: (-) 15.72 percent

Eggs, meat, fish: 10.04 percent

Cereals: 1.68 percent

Rice: 2.34 percent

Wheat: (-) 4.70 percent

Pulses: 13.00 percent

SUPPORT TWOCIRCLES HELP SUPPORT INDEPENDENT AND NON-PROFIT MEDIA. DONATE HERE