Food inflation softens; Fuel inflation steady

Annual food inflation in India inched lower in the last week of September while fuel inflation stayed static in the same period, data released by the Government showed. But, the Reserve Bank of India (RBI) is still expected to continue its policy of gradually increasing the key interest rates as it tries to rein in spiraling prices in a rapidly growing economy. The central bank next meets on November 2. Inflation in the Food Articles space stood at 16.24% in the week ended Sept. 25 as against 16.44% in the preceding week, the Commerce & Industry Ministry said in a statement. It was at 12.85% in the year-ago period. The index for Food Articles group declined by 0.1% to 179.70. Inflation in the Primary Articles group rose to 18.53% in the week under review from 18.31% in the week ended Sept. 18. It was at 9.78% in the week ended Sept. 26, 2009. The index for Primary Articles group rose by 0.1% to 181.0. Annual inflation in the Fuel & Power group stood unchanged at 10.73% in the week ended Sept. 25. It was at (-)7.81% in the week ended Sept. 26, 2009. The index for this group remained unchanged at its previous week's level of 147.60.