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Food inflation rate slows
20 May 2011: Food inflation continued its downward trend for the third straight week., It was helped mainly by the base effect and a decline in the price of items such as pulses, wheat, vegetables, milk and poultry products.
Based on the annual Wholesale Price Index, the food inflation rose 7.47 per cent on a year-on-year basis during the week ended May 7, lower than the 7.7 per cent annual rise reported in the previous week. The food inflation reading during the same week a year ago was 22.15 per cent.
The fuel price index climbed 12.11 per cent during the latest reported week, down from 12.25 per cent in the previous week, Government data showed on Thursday.
The overall inflation in primary articles during the latest week stood at 10.94 per cent, down from 11.96 per cent in the previous week. In the non-food primary articles segment, inflation was recorded at 23.82 per cent, down from the 28.62 per cent during the week ended April 30.
Food inflation remained in double-digits for most of 2010 before showing signs of moderation from March 2011.
During the week under review, pulses were down 8.87 per cent year-on-year, while vegetables dipped 3.61 per cent. Wheat was down 0.06 per cent.
In the non-food primary articles segment, fibres were up almost 62 per cent, while minerals surged 11.95 per cent.
Headline inflation stood at 8.66 per cent in April, down from over 9 per cent in March. In its monetary policy for 2011-12, RBI had said overall inflation would remain high in the near future, averaging 9 per cent during the first-half of the fiscal, before moderating to around 6 per cent by the year-end.
Source: Hindu Business Line