Cheaper pulses and vegetables have brought down food inflation to a seven-week low of 7.61 per cent for the week ended June 25th. Food inflation, as measured by the Wholesale Price Index, stood at 7.78 per cent during the previous week. However, Finance Minister Pranab Mukherjee has said that inflationary pressure is likely to continue following the recent increase in rates of petroleum products.While the inflation for non-food primary articles fell during the period under review, a rise was noticed in the fuel and power index on account of hike in prices of diesel, cooking gas and kerosene announced last month. It was almost 20 per cent during the comparable period of June, 2010.The Finance Minister said, there is inflationary pressure in the system and these weekly variations in food inflation numbers are mainly because of the base effect. He further said, the overall inflation in June could see some upward movement, from 9.06 per cent recorded in May and it would be mainly on account of the fuel price hike announced on June 24th. Meanwhile, inflation in overall primary articles stood at 11.56 per cent for the week ended June 25th, down from 11.84 per cent in the previous week.
News On AIR | July 7, 2011 8:17 PM
Food inflation eases marginally