Food inflation eases to 9.47% for week ended 3 September

New Delhi: Food inflation declined marginally but was still high at 9.47 percent for the week ended 3 September, with prices of all items, barring pulses and wheat, rising on an annual basis.

Food inflation, as measured on the basis of the Wholesale Price Index (WPI), stood at 9.55 percent in the previous week. The rate of price rise of food items was 15.16 percent in the corresponding week of 2010.

 Food inflation eases to 9.47% for week ended 3 September

The decline could also be attributed to the high inflation of over 15 percent in the corresponding year-ago period. Reuters

As per data released by the government today, prices of pulses fell by 2.45 percent year-on-year, while wheat became cheaper by 2.03 percent during the week ended 3 September.

However, other food items became more expensive during the week under review.

Onions grew dearer by 42.98 percent on an annual basis, while potato prices were up 21.16 percent.

Furthermore, fruits became 22.64 percent more expensive during the week ended 3 September and overall, prices of vegetables shot up by 17.47 percent.

In addition, milk became 10.02 percent costlier, while the rates for cereals were up by 5.02 percent during the seven-day period under review.

The fall in food inflation could be attributed to a moderation in the rate of price rise of some of the items on a week-on-week basis, even though they remained higher on an annual basis.

The decline could also be attributed to the high inflation of over 15 percent in the corresponding year-ago period, a phenomenon dubbed the 'high base effect' in economic parlance.

Overall, inflation in primary articles was recorded at 13.04 percent during the week ended 3 September, down from 13.34 percent in the previous week. Primary articles account for over 20 percent of wholesale price index inflation.

PTI

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Updated Date: Dec 20, 2014 05:40:03 IST