November 25, 2010 8:04 PM

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Food inflation declines to three-month low

Falling for the sixth straight week, food inflation declined to a three-month low of 10.15 per cent for the week ended November 13, on cheaper vegetables and pulses. Food inflation in the previous week had stood at 10.3 per cent. Prices of food items like pulses and vegetables declined during the week on improved availability after the end of the monsoon. On an annual basis, prices of pulses fell by 7.58 per cent, and vegetables became cheaper by 3.76 per cent on account of a sharp dip in potato prices, which declined 48.7 per cent. However, food items like eggs, meat and fish rose by about 23 per cent. Also, fruits and milk became costlier by 21.85 per cent and 16.90 per cent, respectively, on year-on-year basis. Decline in food inflation has raised hopes that overall inflation may decline to around 6 per cent by the end of the year, as predicted by the government.

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