Food price inflation drops further to 12.30 per cent

Inflation rate based on the wholesale price index of food articles in the country dropped further to 12.30 per cent (provisional) during the week ended 30 October 2010 from 12.85 per cent (provisional) in the previous week.

The decline in inflation rate was due to lower prices of masur (-3 per cent), arhar, moong and urad (-2 per cent each) and bajra (-1 per cent).

Food price inflation stood at 12.59 per cent in the comparable week of the previous year (ended 31 October 2010).

Build-up of food price inflation so far during the financial year (beginning 1 April 2010) was 9.37 per cent (provisional) against 17.98 per cent in the corresponding week of the previous year.

The index for the `food articles' group, however, rose 0.4 per cent to 179.8 (provisional) from 179.1 (provisional) in the previous week due to higher prices of barley, fruits and vegetables and egg (2 per cent each) and fish-inland, poultry chicken and gram (1 per cent each). However, the prices of masur (-3 per cent), arhar, moong and urad (-2 per cent each) and bajra (-1 per cent) declined.

Inflation rate based on the wholesale price index of non-food articles declined to 20.49 per cent (provisional) during the week ended 30 October 2010 against 21.64 per cent (provisional) in the previous week.