Continuing with the downward trajectory, India's food inflation for the week ended December 3, eased drastically to 4.35 per cent against 6.6 per cent in previous week following lower prices of fruits & vegetables.
Meanwhile, the fuel price index showed marginal change at 15.24 per cent against 15.53 recorded previous week. The decrease in fuel inflation could be accounted to the reduction in petrol prices announced in November.
Besides, the primary articles index also decreased to 5.48 per cent, compared with an annual rise of 6.92 per cent a week earlier.
The fall in the data has followed Chief Economic Advisor Kaushik Basu's projection of attaining food inflation at 3 per cent.
“I do expect the food inflation to come down to below 3 per cent within a month," said Kaushik Basu.
If the food inflation actually drops below 3 per cent at the start of the next year, then it may also change Reserve Bank of India's (RBI) current policy stance. The central bank of India has hiked interest rates thirteen times since March 2010 to tame inflation.
Dion Global Solutions Ltd