India's food inflation rate dips sharply to 9.67 %

India's food inflation rate dipped sharply to 9.67 per cent in the year to July 17 from 12.47 in the previous week, while fuel prices remained more or less steady at 14.29 per cent up from a year ago, an official statement said here today, quoting provisional data.

This is the first time in this year that the food inflation rate has come down to single digit levels and is bound to come as a bit of relief to the Government, which is facing a determined attack by a united Opposition in Parliament on the issue of rising food and fuel prices.

High prices of food items have been a cause of worry for the Government since the worst monsoon in more than three decades last year and floods in some states adversely affected the Kharif crop.

According to the figures released today, the prices of pulses were up 21.23 per cent from a year ago, milk by 19.03 per cent, fruits by 12.14 per cent, wheat by 6.27 per cent, cereals by 5.62 per cent and rice by 5.31 per cent.

However, the prices of potatoes were down 46.05 per cent, vegetables 14.77 per cent and onions 10.25 per cent.

Overall, the annual rate of inflation for Primary Articles, which have a weight of 22.02 per cent in the Wholesale Price Index (WPI), stood at 14.50 per cent for the week ended July 17 as compared to 16.48 per cent for the previous week and 8.18 per cent during the corresponding week, ended July 18, 2009, of the previous year.

The index for this major group rose by 0.4 per cent to 308.8 from 307.5 for the previous week, the provisional data showed.

Within this group, the index for Food Articles rose by 0.6 per cent to 299.3 from 297.6 for the previous week due to higher prices of fish-marine (3%), gram and milk (2% each) and mutton, urad, wheat, tea and maize (1% each). However, the prices of fish-inland and rice (1% each) declined.

The index for Non-Food Articles rose by 0.2 per cent to 288.6 from 288.1 for the previous week due to higher prices of rape & mustard seed and sunflower (2% each) and raw silk, raw jute, groundnut seed and copra (1% each). However, the prices of raw cotton (1%) declined.

In the category of Fuel, Power, Light & Lubricants, which have a weight of 14.23 per cent, the index declined by 0.1 per cent to 386.3 from 386.7 for the previous week due to lower prices of naphtha, light diesel oil and furnace oil (1% each).

The annual rate of inflation for this group stood at 14.29 per cent for the week as compared to 14.27 per cent the previous week and (-)10.63 per cent during the corresponding week of the previous year.

NNN