Food inflation softens; fuel prices edge up

India’s food price inflation registered a slight decline in the fourth week of December, but continues to hold near the 11-year high, the Government said. Inflation for the Food Articles group stood at 18.22% in the week ended December 26, 2009 as against 19.83% in the previous week, the Commerce & Industry Ministry said in a statement.

The index for the Primary Articles group declined by 0.7% to 282.2 from 284.1 in the previous week. The annual rate of inflation stood at 14.39% for the week ended Dec. 26, 2009 compared to 15.49% in the previous week. It was at 11.23% during the corresponding week of the previous year.

The index for the Fuel & Power group rose by 0.4% to 346.2 from 344.9 for the previous week due to higher prices of light diesel oil (5%), naphtha (3%) and furnace oil (2%). However, the prices of bitumen (1%) declined.

Inflation for this group stood at 4.85% for the week ended Dec. 26, 2009 as against 4.45% for the week ended Dec. 19, 2009). It was at (-) 0.75% during the corresponding week of the previous year.

India's annual wholesale inflation rose to 4.78% in November compared with 1.34% rise in October and 8.48% a year ago.