Food inflation softens...Fuel inflation rises

The annual rate of inflation in the food space decreased in the third week of May but stayed above the 8% mark, data released by the Government showed on Thursday. Inflation in the Fuel & Power space climbed during the week under review while that in Non-Food category declined, the data revealed.

Annual inflation in Food Articles fell to 8.06% in the week ended May 21 from 8.55% in the preceding week, the Commerce & Industry Ministry said in a statement. With this, food inflation has remained under the much-dreaded double digit mark for the tenth straight week.



Food inflation was at 21.15% in the year-ago period. The index for 'Food Articles' group fell by 0.2% to 186.3 from 186.7 in the preceding week.

Inflation in the Primary Articles group dropped to 10.87% in the week under consideration from 11.60% in the week ended May 14, according to the Commerce Ministry statement.

Inflation in the Primary Articles space was at 20.40% in the comparable period last year. The index for this group dipped by 0.4% to 191.7 from 192.4 in the previous week.

Inflation in the Fuel & Power group rose to 12.54% in the week ended May 21 from 12.10% in the week ended May 21, the Government data showed.

Inflation in the Fuel & Power space was at 14.24% in the week ended May 22, 2010. The index for the Fuel & Power group rose by 0.4% to 160.7 from 160.1 in the previous week.

Inflation in the Non-Food Articles space decreased to 21.31% in the week under review from 23.22% in the week ended May 14. It was at 14.04% in the same period a year earlier. The index for this group declined by 1% to 183.3 from 185.2 in the previous week.

Inflation in the Minerals group remained unchanged from the previous week at 11.78%. Inflation in this group stood at 27.88% in the corresponding period of last year. The index for this group remained static at 266.6.