Food inflation slides below 8%

The annual rate of inflation in the food space decreased in the third week of June, data released by the Government showed. But, inflation in the Fuel & Power space inched higher, the data revealed. Annual inflation in the Food Articles space fell to 7.78% in the week ended June 18 from 9.13% in the previous week, the Commerce & Industry Ministry said. Food inflation was at 20.12% in the year-ago period. Inflation in the Primary Articles group decreased to 11.84% in the week under consideration from 12.62% in the week ended June 11, according to the Commerce Ministry statement. Inflation in the Primary Articles space was at 19.58% in the comparable period last year.



Inflation in the Fuel & Power group increased to 12.98% in the week under review from 12.84% in the week ended June 11, the Government data showed. Inflation in the Fuel & Power space was at 12.54% in the week ended June 19, 2010. Inflation in the Non-Food Articles space declined to 17.91% in the week ended June 18 from 18.43% in the previous week, the Government data showed today. It was at 16.08% in the same period a year earlier. Inflation in the Minerals group stood at 28.51% in the week under consideration versus 25.90% in the week ended June 11, according to the Commerce Ministry data. Inflation in this group stood at 22.10% in the year-ago period.

On an annual basis, onions turned costlier by ~16.08% in the week under consideration, while on a week-on-week basis, they were up by ~2.7%. Vegetable prices were down ~10% on an annual basis, while on a weekly basis they were static. Fruits turned costlier by ~25% year over year, while Egg, Meat & Fish became pricey by ~10.32% compared to the year-ago period.

Potato prices were down 2.4% on an annual basis while Cereal prices went up by ~4.8% year over year. Prices of pulses fell by ~9.5%. Annual inflation in Rice stood at ~2% while wheat prices remained stable. In the Non-Food category, prices of Fibres jumped by ~40% year-on-year while that of Oilseeds rose by 13.7% from a year ago.