India's food inflation falls sharply to 0.42%

Business

oi-Monika

By Monika Nihalani

Published: Thursday, December 29, 2011, 15:19 [IST]

India's food inflation fell sharply to 0.42% for the week ended December 17. The food inflation which is calculated on the basis of Wholesale Price Index (WPI) stood at 1.81% for the previous week.

According to the official data released today, the primary articles which has a weightage of 20.12% fell to 2.78% against 3.78% recorded previous week.

The major weightage came from onions which became cheaper by 59.04%, followed by vegetables by 36.02% and potato by 33.76%.

Fruits, milk and egg, meat & fish became cheaper by 8.46%, 11.30% and 11.56%, respectively.

Fuel and power inflation cool down to 14.37% against 15.24%.

Petrol prices came down to 17.14%.

The recent pull down in food inflation figures came as relief for the policy makers who have been struggling hard to overcome overall inflation and has opened up window for the Reserve Bank to liberate rate policy.

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