Food price inflation rate falls further to 10.05 per cent

The annual rate of inflation based on the wholesale price index of food articles in the country eased further to 10.05 per cent (provisional) during the week ended 14 August 2010 from 10.35 per cent (provisional) during in the previous week.

The decline in inflation rate was due mainly to lower prices of fresh water fish (-11 per cent), moong, poultry chicken and gram (-2 per cent each) and maize, arhar, urad and rice (-1 per cent each).

Food price inflation stood at 13.45 per cent in the comparable week a year ago (week ended 15 August 2009).

Build-up of food price inflation so far during the financial year (beginning 1 April 2010) was 3.47 per cent (provisional) during the week ended 14 August 2010 against 10.90 per cent in the corresponding week of the previous year.

The index for the 'food articles' group declined 0.2 per cent to 297.9 (provisional) from 298.6 (provisional) in the previous week due to lower prices of fish-inland (-11 per cent), moong, poultry chicken and gram (-2 per cent each) and maize, arhar, urad and rice (-1 per cent each). However, the prices of fruits and vegetables (2 per cent) and wheat (1 per cent) moved up.

Inflation rate based on the wholesale price index of non-food articles increased to 22.20 per cent (provisional) during the week ended 14 August 2010 from 21.70 per cent (provisional) during the previous week.