Food inflation eases to 8.53%

Posted By: Religare
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Food inflation eases to 8.53%
Due to the downfall witnessed in the prices of pulses, the food inflation of the week ended April 23, 2011 eased at 8.53%. The previous week witnessed food inflation of 8.76%.

This fall of inflation acted as a relief factor for RBI and the government as during the start of the current week RBI came out with its annual monetary policy, which has been specifically made to fight price hike and control inflation.

Inflation has been a major concern since the past one year and the government has been trying to pull it down by taking various steps. Last year during the same week food inflation figures stood at 20.91% that is more than a double of the present food inflation figures.

This third week of April which has been kept under review saw a decrease in the prices of pulses by around 7.39% when compared to the prices that existed last year during the corresponding period. Apart from pulses, all the other commodities including rice, wheat and vegetables have gone through a price hike of 2.08%, 0.06% and 3.44% during the reviewed week.

However, the prices of cereals and fruits on the other side turn out to be dearer by 4.42% and 32.69% year-on-year basis. Looking at the items which belong to the non-food category like fibre, fuel and power, petrol, the prices of all three of them have gone up in FY11 by 85.58%, 13.53% and 21.81%.

The food inflation was at its peak during the last fiscal that is FY10 due to the rising prices of the food items. Though anticipation has been made by the government that this year the prices of the food items will remain under control because of an increased crop expected to come during FY11 (July-June).

According to the RBI inflation is predicted to remain around 9% during the first half of the current fiscal year and later might go down to 6% during the month of March in 2012. Moreover, RBI even informed in its monetary policy report which it released this week that major part of the government"s focus during the first half of the current fiscal would remain in pulling down the inflation.

It said that rise in inflationary pressure if bound to happen during the first few months of FY11 as the prices of oil and commodity will foresee a significant hike in the international market.

Read more about: inflation, food, rbi
Story first published: Friday, May 6, 2011, 9:30 [IST]
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