Food price inflation declines further to 12.85 per cent

Inflation rate based on the wholesale price index of food articles in the country dropped further to 12.85 per cent (provisional) during the week ended 23 October 2010 from 13.75 per cent (provisional) in the previous week.

The decline was due mainly to lower prices of arhar (-6 per cent), urad (-3 per cent), moong and poultry chicken (-2 per cent each) and gram, maize, fruits and vegetables and condiments and spices (-1 per cent each).

Food price inflation stood at 12.87 per cent in the comparable week of the previous year (week ended 24 October 2010).

Build-up of food price inflation so far during the financial year (beginning 1 April 2010) was 8.94 per cent (provisional) against 16.95 per cent in the corresponding week of the previous year.

The index for the 'food articles' group declined 0.2 per cent to 179.1 (provisional) during the week under review from 179.5 (provisional) in the previous week due to lower prices of arhar (-6 per cent), urad (-3 per cent), moong and poultry chicken (-2 per cent each) and gram, maize, fruits and vegetables and condiments and spices (-1 per cent each). However, the prices of tea (7 per cent), fish-inland (3 per cent) and barley (2 per cent) moved up.

Inflation rate based on the wholesale price index of non-food articles declined to 21.64 per cent (provisional) during the week ended 23 October 2010 from 22.80 per cent (provisional) in the previous week.