Food inflation slips to 7.58 per cent

MUMBAI: Food inflation fell to a three-week low of 7.58 per cent for the week ended July 9 on the back of cheaper pulse prices and a high base last year.

Food inflation, as measured by the Wholesale Price Index (WPI) stood at 8.31 per cent in the previous week. It was as high as 19.52 per cent in the corresponding week of July, 2010, suggesting a high base.

As per data released by the government on Thursday, prices of pulses went down by 7.67 per cent on a year-on-year basis.

However, prices of other food items continued to rise.

The data comes a day after the government said that pressure from headline inflation would remain till December on accountof high international commodity prices.

Headline inflation stood at 9.44 per cent in June. It has remained consistently above the 9 per cent mark since December, 2010.

During the week ended July 9, onions became 19.68 per cent more expensive on an annual basis while fruits grew dearer by 15.84 per cent.

The price of milk was up 10.76 per cent and eggs, meat and fish grew almost 8 per cent more expensive.

Cereals and vegetables became dearer by 4.77 per cent and 4.31 per cent, respectively, year-on-year.

Inflation of overall primary articles stood at 11.13 per cent during the week under review, down from 11.58 per cent in the previous week. Primary articles have a share of over 20 per cent in the WPI.

Meanwhile, inflation of non-food articles was at 15.50 per cent for the week ended July 9, compared to 15.20 per cent in the previous week.

Keywords: Business news, business discussion, Food inflation , international commodity prices, sensex