Food price inflation stays below zero per cent

Food price inflation in India, which turned negative at (-) 3.36 per cent during the week ended 24 December 2011, remained negative for the week ended 31 December 2011 as well, although a tad higher at (-) 2.90 per cent.

The decline in the wholesale price-based inflation rate was aided by lower prices of vegetables, following an increase in supplies of seasonal vegetables.

Although prices of most other essential commodities continue to rule high, the decline in inflation rate is expected to help the Reserve Bank of India (RBI) to ease monetary policy stance.

Food price inflation in the country stood at 19.09 per cent during the comparable period of the previous year. Build-up of inflation so far during the financial year was 6.53 per cent against 19.53 per cent in the comparable period of the previous year.

The index for the 'food articles' group rose 0.4 per cent to 190.8 (provisional) during the week from 190.0 (provisional) in the previous week.

During the week prices of fish (marine) rose 5 per cent while mutton prices were up 4 per cent, barley, poultry chicken, gram and jower up 2 per cent each and bajra, maize, milk and egg costlier by 1 per cent each. However, the prices of tea (down 3 per cent), condiments and spices and ragi (down 2 per cent each) and fish-inland and fruits and vegetables (down 1 per cent each) declined.

Inflation rate for the non-food articles group stood higher at 1.29 per cent during the week ended 31 December 2011, against 0.85 per cent during the previous week. It was 24.10 per cent during the comparable week of the previous year.