July 30, 2010 9:39 AM

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Food inflation dips to 9.6 per cent

Food inflation fell by 2.80 percentage points to 9.67 per cent for the week ended July 17. It declined to single digit level for the first time this year. In the previous week, the food inflation was 12.47 per cent. The fall in inflation is mainly due to decline in prices of vegetables, especially potatoes and onions. According to data released by the government, on a yearly basis, potatoes became cheaper by over 46 per cent and onions by over 10 per cent. Overall vegetable prices fell 14.77 per cent. However, prices of pulses rose by 21.23 per cent, milk by 19.03 per cent and fruits by 12.14 per cent. Similarly, prices of cereals rose by 5.62 per cent on a year-on-year basis. On a weekly basis, prices of onions fell by 0.66 per cent, while that of potatoes inched up by 2.06 per cent. Overall vegetable prices on a weekly basis went down by 0.34 per cent.

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