India food inflation falls to 15.53%

Friday, 22 October 2010 03:33 - - {{hitsCtrl.values.hits}}

NEW DELHI: Food inflation declined to 15.53 per cent for the week ended October 9, on improved supplies and declining prices of certain vegetables, especially, potato.

Food inflation fell by 0.84 percentage points to 15.53 per cent during the week, from 16.37 per cent in the previous week, government data showed.

On an annual basis, potato prices eased by 50 per cent and onions became cheaper by 8.62 per cent. However, other essential items like cereals, milk and fruits continued to remain dearer.

Experts said the impact of adequate monsoon was slowly becoming visible on prices of essential items, as supply side pressure was easing after good harvest.

On an annual basis, cereals prices have risen by 5.88 per cent. While pulses became costlier by 4.44 per cent on a yearly basis, wheat and rice prices increased by 7.01 per cent and 4.72 per cent, respectively.

Among other food items, milk prices soared by 21.65 per cent during the week compared to the same period last year, while fruit rates rose by 15.65 per cent.

Overall, vegetable prices remained high with a 12.26 per cent increase on an annual basis.

After some moderation in July, food inflation remained high during August and September due to supply disruptions, caused by heavy monsoon.