Food price inflation dips further to 12.63 per cent

The annual rate of inflation based on the wholesale price index of food articles in the country, which showed an unexpected dip to 12.92 per cent in the week ended 19 June 2010, fell further to 12.63 per cent during the week ended 26 June 2010.

The decline in inflation was due mainly to lower prices of fruits and vegetables, moong and rice (-1 per cent each).

Food price inflation stood at 12.21 per cent in the comparable week a year ago (week ended 27 June 2009).

The build-up of food price inflation so far during the financial year (beginning 1 April 2010) also stood at 2.82 per cent against 2.92 per cent in the previous week despite the steady build up of prices of essential commodities. The build-up of food prices was 7.66 per cent in the corresponding week of the previous year.

The index for the 'food articles' group declined 0.1 per cent to 296.0 (provisional) from 296.3 (provisional) in the previous week due to lower prices of fruits and vegetables, moong and rice (-1 per cent each). However, the prices of maize (5 per cent), bajra (2 per cent) and eggs, mutton, jowar and condiments and spices (1 per cent each) moved up.

Inflation rate based on the wholesale price index of non-food articles, however, showed an increase to 18.60 per cent during the week ended 26 June 2010 from 15.91 per cent in the previous week. Inflation rate for the group stood at a negative (-)1.79 per cent in the comparable week of the previous year.