Sunday, Dec 04, 2022

Food inflation down marginally second week in a row

Food inflation fell to 9.53 per cent during the week ending July 24,as the price of vegetables fell along with fruits and sea fish....

Food inflation fell to 9.53 per cent during the week ending July 24,as the price of vegetables fell along with fruits and sea fish,providing some relief to the government facing opposition flack because of surging prices. For the second week,inflation remained in the single-digits as prices declined by 0.14 percentage points compared to 9.67 per cent in the previous week.

Although the continued fall into single digits is well below last year’s 14.58 per cent rise during the corresponding period,the price of milk,pulses and fruits continue to surge,gaining by 19.03 per cent,20.49 per cent and 8.38 per cent respectively. The rise is comparable to last weeks’ rise for the three commodities,however experts still expect all-around food inflation to stay on the downswing. “There is expectation of a better crop following the monsoon and there is also an increase in output in the farmers’ hands. The supply side in the market is good. Going forward,we can expect further fall in the food inflation rate,” NCAER chief statistician Rajesh Shukla said. Though prices may continue to fall,in percentage terms,it may not prompt the Reserve Bank to reverse its monetary tightening. “We don’t see the central bank rushing in,” Shukla said. The RBI has started reversing its soft monetary policy since the early this year as inflation was on the rise.

But major items in the fuel inflation saw no change in prices,as the fuel price hike had a one-time impact on their prices. However,aviation turbine fuel fell by 4 per cent,leading to a slight decline in fuel,power,light and lubricants inflation to 14.26 per cent during the week.

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First published on: 06-08-2010 at 03:45:37 am
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