Food inflation eases to nearly four-year low of 4.35 per cent

New Delhi, Dec 15: Food inflation fell to a nearly four-year low of 4.35 per cent during the week ended December 3, reflecting a decline in prices of essential items like vegetables, onions, potatoes and wheat.

This is the lowest rate of food inflation since the week ended February 23, 2008, when it stood at 4.28 per cent.

Food inflation, as measured by the Wholesale Price Index (WPI), stood at 6.6 per cent in the previous week. It was recorded at 10.78 per cent in the corresponding period last year.

Experts feel the moderation in the rate of price rise of food items below the psychological 5%-mark will bring relief to the government, which has been battling high inflation for almost two years now.

According to data released by the government today, onions became cheaper by 46.03 per cent year-on-year during the week under review, while potato prices were down by 33.28 %. Prices of wheat also fell by 4.43%.

Overall, vegetables became cheaper by 12.28%.

However, other food products grew more expensive on an annual basis, led by protein-based items.

Pulses became 11.76% costlier during the week under review, while milk grew dearer by 11.08% and eggs, meat and fish by 9.26%.

Fruits also became 9.37% more expensive on an annual basis, while cereal prices were up by 1.85%.

Inflation in the overall primary articles category stood at 5.48% during the week ended December 3, as against 6.92% in the previous week. Primary articles have over 20 per cent weight in the wholesale price index.

PTI