New Delhi, January 19: Food inflation remained in the negative zone for the third straight week, at (-)0.42 percent for the week ended January 7, mainly due to fall in prices of onion and vegetables.
Food inflation, as measured by the Wholesale Price Index (WPI), was at (-) 2.90 percent in the previous week. It was above 16 percent in the corresponding week of 2011.
According to the official data released today, onion prices were lower steeply by 75.42 percent year-on-year during the week under review, while potato prices were down by 23.84 percent. Prices of wheat also fell by 3.57 percent.
Overall, vegetables were 45.81 percent cheaper during the week under review than in the same period last year.
Other food products, led by protein-based items, became more expensive on an annual basis.
Pulses prices were 14.27 percent higher during the week under review, while milk grew dearer by 11.48 percent. Egg, meat and fish prices were up 19.64 percent year-on-year.
Fruits also became 10.03 percent more expensive on an annual basis, while cereal prices were up 2.26 percent.
Inflation in the overall primary articles category stood at 2.47 percent during the week ended January 7, against 0.51 percent in the previous week. Primary articles have over 20 percent weight in the wholesale price index.
Experts feel that the decline in food inflation, along with moderation in headline inflation during December 2011, will be a major incentive for the Reserve Bank to look at the option of cuts in key interest rates in the near future.
PTI
Post new comment