October 28, 2010 9:00 PM

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Food inflation declines for 2nd consecutive week, down by 1.78 percentage points<br/>

Food inflation has declined for the second consecutive week. It came down by 1.78 percentage points to 13.75 per cent for the week ended October 16. According to official data, it was 15.53 per cent in the previous week. The fall was achieved due to improved kharif supplies and fall in prices of vegetables like potatoes and onions. However, other essential items like cereals, milk and fruits continued to remain costly. Experts say, the impact of a good monsoon is slowly becoming visible on prices of essential items, as supply side pressure is easing after a good kharif harvest. After some moderation in July, food inflation remained high during August and September due to supply disruptions, caused by heavy monsoons.

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