Wholesale food price inflation rate falls to 9.67 per cent, but prices rise

The annual rate of inflation based on the wholesale price index of food articles in the country plummeted to 9.67 per cent during the week ended 17 July 2010 against 12.47 per cent in the previous week.

The fall in inflation rate was despite a rise in the prices of fish-marine (3 per cent), gram and milk (2 per cent each) and mutton, urad, wheat, tea and maize (1 per cent each). The fall in inflation rate during the week must have been due to a one per cent fall in the prices of fish (inland) and rice.

Food price inflation stood at 15.05 per cent in the comparable week a year ago (week ended 18 July 2009).

Build-up of food price inflation so far during the financial year (beginning 1 April 2010), however was higher at 3.96 per cent during the week ended 17 July 2010 against 2.24 per cent in the previous week. It was 11.80 per cent in the corresponding week of the previous year.

The index for the 'food articles' group rose 0.6 per cent to 299.3 (provisional) from 297.6 (provisional) in the previous week due to higher prices of fish-marine (3 per cent), gram and milk (2 per cent each) and mutton, urad, wheat, tea and maize (1 per cent each). However, the prices of fish-inland and rice (-1 per cent each) declined.

Inflation rate based on the wholesale price index of non-food articles shot up further to 21.01 per cent during the week ended 17 July 2010 from 20.75 per cent in the previous week. Inflation rate for the group stood at a negative (-) 3.71 per cent in the comparable week of the previous year.