Food inflation eases for 3rd straight week

India’ food inflation dropped for a third consecutive week, giving some relief to consumers amid mounting concerns that spiraling prices could prompt the RBI to hike interest rates. The index for 'Food Articles' group declined by 1.1% to 282.6. Inflation in Food Articles group slipped to 16.30% in the week ended March 6 from 17.81% in the previous week and 17.87% in the week ended February 20. Inflation in Food Articles space was at 7.57% only last year.

Primary Articles inflation also slipped to 14.16% in the week under review as compared to 15.08% in the previous week. It stood at 5.06% in the week ended March 7, 2009. The WPI for Primary Articles group declined by 0.9% to 282.1. Inflation in the Non-Food Articles group rose to 13.99% from 13.60% in the previous week. Inflation in the Fuel & Power group rose to 12.68% in the week ended March 6 as against 11.38% in the previous week. Inflation in this group was at -5.95% in the corresponding period of last year. Inflation in the Electricity group shot up to 4.72% in the week under review from 1.95% in the week ended February 27