Food inflation slips into negative zone to -3.36%

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Food inflation slips into negative zone to -3.36%
Food inflation which is calculated on the basis of wholesale price index (WPI) slipped into negative zone to -3.36% for the week ended December 24, the government data showed today.

The food inflation figures clocked at 0.42% for the previous week and 20.84% for the corresponding period previous year.

The recent dip was on account of cheaper vegetables and onion.

The primary articles which contributes 20.12% in food inflation fell to 0.10% against 2.70% reported previous week.

The price of cereals and rice remained costly by 1.97% and 1.46%, respectively, while the price of wheat came down to 3.41%.

Vegetables and onions became cheaper by 50.22% and 73.74%, respectively.

The fuel and power inflation stood high at 14.60%.

The interest rates still remain high in India and the central bank has not reverted its interest rate hike cycle yet.

The dip in food inflation figure has opened up gates for the Reserve Bank of India to liberalize monetary policy in its next meet as the dip will also have a positive impact on overall inflation.

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