NEW DELHI (Commodity Online): India's food inflations continues to fall, for the week ended December 17th, it fell to 0.42%, lowest level in almost six years.
With the dip in food inflation, Reserve Bank of India (RBI) may consider cutting down interest rates.
The price of onion and potato dropped sharply, while pulses rose to nearly 15%, milk and poultry registered 11% price hike.
In the preceding week, which ended on 10th December, fell to four year low of 1.81% and tit touched double digit in November.
According to the official data, the overall price of vegetables has become cheaper by 36.02%. The onions grew cheaper by 59.04% year-on-year. While potato prices were down by 33.76%.
"The continued decline in vegetable prices subsequent to the harvest has resulted in a substantial easing of the food price index, despite prices of cereals and pulses remaining largely steady over this period. Additionally, the base effect has aided in the sharp decline in the pace of food inflation," said Aditi Nayar, Economist, ICRA, reported PTI.
While, the protein rich products like pulses, milk and poultry prices rose 14.07%, 11.30% and 11.56% respectively.
