Food inflation falls to 8.06 pc for week ended May 21

New Delhi: Food inflation fell to 8.06 per cent for the week ended May 21 on the back of cheaper pulses, wheat and some vegetables, with the latest numbers likely to be seen by the government as a silver lining after the slowdown in economic growth during the first quarter.

Food inflation, as measured by the Wholesale Price Index (WPI), stood at 8.55 per cent during the previous week. The rate of price rise of food items was as high as 21.15 per cent in the third week of May, 2010.

As per data released by government today, prices of pulses were down by 9.22 per cent year-on-year, while wheat became cheaper by 0.77 per cent.

This seems to be a reflection of the record production of wheat and pulses during the 2010-11 crop year (July-June).

During the week under review, prices of vegetables overall were down by 1.06 per cent on an annual basis, while potatoes became cheaper by 2.15 per cent.

However, prices of other food items became more expensive. Fruits were up by 30.51 per cent and onions by 12.32 per cent year-on-year.

Protein-based item also continued on their recent upward trend, with milk prices becoming dearer by 7.04 per cent and eggs, meat and fish becoming 5.50 per cent costlier.

Cereals became dearer by 4.78 per cent, with prices of rice going up by 2.51 per cent.

Overall, primary articles prices registered 10.87 per cent inflation during the week under review, compared to 11.60 per cent in the previous week. .