Food inflation down to 9.18 percent

New Delhi, Apr 7: Food inflation fell to 9.18 per cent for the week ended Mar 26, the lowest level in almost four months, on the back of a decline in the prices of pulses.

Food inflation stood at 9.50 per cent in the preceding week. The last time food inflation was lower than this level was during the week ended Nov 27 last year, when it was registered at 8.69 per cent.

The latest numbers also mean that food inflation is in single digits for the second consecutive week.

During the week under review, prices of pulses fell by 5.39 per cent on an annual basis.

However, other food items continued to exhibit an upward trend in terms of the rate of price rise.

Fruits became dearer by 25.40 per cent year-on-year, while eggs, meat and fish became 12.80 per cent more expensive during the week under review. Milk was also up by 3.87 per cent.

On an annual basis, cereals became dearer by 3.62 per cent, while rice and wheat were up by 2.08 per cent and 0.29 per cent, respectively.

Vegetables were up by 11.41 percent. Potatoes became 5.30 per cent costlier and onion prices went up by 8.48 per cent.

During the week under review, inflation in non-food articles was 27.56 per cent. Fibres became dearer by 86.90 per cent, while fuel and power was up by 13.13 per cent. Petrol became dearer by 23.14 per cent on an annual basis.

Food inflation was in double digits for most of the last fiscal. However, it has shown signs of slight moderation since the last week of Feb.

The government had earlier said that rising food prices were one of the major reasons for overall inflation remaining high. Headline inflation was 8.31 per cent in Feb.

The government had yesterday said that India's foodgrains production is estimated at a record 235.88 million tonnes in the 2010-11 crop year, ending Jun, on the back of the highest-ever output of wheat and pulses.

Experts have said this is likely to put a brake on the high food inflation numbers.

PTI