Business   

Food inflation eases to 12.5 %

NEW DELHI: Food inflation eased a tad to 12.47 per cent for the week ended July 10 from 12.81 per cent in the previous week owing to a marginal fall in prices of essential items such as pulses, vegetables and wheat, apart from the effect of a high base as the food price spiral in the like period last year was at 11.93 per cent.

Even as the softening trend in food inflation is expected to be more pronounced in the coming weeks following a good monsoon, the cascading impact of the hike in fuel prices, especially that of diesel, is yet to be fully reflected in the prices of other items although the category-wise inflation for ‘fuel, power, light and lubricants' remained steady at 14.27 per cent for the week.

The prime concern for the government is that both the WPI (Wholesale Price Index) based food and headline inflation have remained in double digits, despite the high base effect, and a discernible decline is not expected before September.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

India will be 3rd largest FDI recipient in 2010-12
Obama signs historic Bill
GST will make India a $2-trillion economy soon, says Pranab
RBI allows take-out finance
Dr. Reddy's first quarter net profit dips
Porsche launches second generation Cayenne
Huawei accused of stealing trade secrets by Motorola
Food inflation eases to 12.5 %
ITC registers 22 % rise in net
Prozone to use Distil solution
Brandhouse Oviesse to open fashion stores
Sensex closes above 18000-level
Exchange Rates
Bullion Rates
Vijaya Bank net rises to Rs. 173 crore
BSNL ties up with Union Bank
Sharp rise in Shriram Transport profit

Copyright © 2010, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu