NEW DELHI (Commodity Online): India's food inflation based on wholesale-price index (WPI) has fallen to 4.35% for the week ended December 3, 2011 as against previous week's annual rise of 6.6%. he dip in the WPI-based food inflation estimates was largely on account of a decline in price levels of essential items like wheat and vegetables such as onions and potatoes.
This is the lowest rate of food inflation since the week ended February 23, 2008, when it stood at 4.28 per cent. In the corresponding period last year, it was recorded at 10.78 per cent.
Experts feel the moderation in the rate of price rise of food items below the psychological 5 per cent-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 33.28 per cent. Prices of wheat also fell by 4.43 per cent. Overall, vegetables became cheaper by 12.28 per cent.
However, other food products grew more expensive on an annual basis, led by protein-based items.
Pulses became 11.76 per cent costlier, while milk grew dearer by 11.08 per cent and eggs, meat and fish by 9.26 per cent. Fruits also became 9.37 per cent more expensive on an annual basis, while cereal prices were up by 1.85 per cent.
Inflation in the overall primary articles category stood at 5.48 per cent during the week ended December 3 against 6.92 per cent in the previous week. Primary articles have over 20 per cent weight in the wholesale price index.
Inflation in the non-food segment, which includes fibres and oilseeds, was recorded at 2.12 per cent during the week under review against 1.37 per cent in the week ended November 26. Fuel and power inflation stood at 15.24 per cent (15.53 per cent).
The decline in the rate of price rise in food items, which was in double digits till early November, is likely to give some relief to the government and the Reserve Bank, which have been facing flak from all quarters for persistently high prices.
