June 2, 2011 8:51 PM

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Food inflation falls to 8.06 per cent

Food inflation has fallen to 8.06 per cent for week ended May 21. This follows cheaper pulses, wheat and some vegetables. Food inflation, as measured by the Wholesale Price Index or WPI, stood at 8.55 per cent during the previous week. The rate of price rise of food items was as high as 21.15 per cent in the third week of May, 2010.As per data released by government On Thursday, prices of pulses were down by 9.22 per cent year-on-year, while wheat became cheaper by 0.77 per cent.This seems to be a reflection of the record production of Wheat and pulses during the 2010-11 crop year. During the week under review, prices of vegetables overall were down by 1.06 per cent on an annual basis, while Potatoes became cheaper by 2.15 per cent.However, prices of other food items became more expensive. Fruits were up by 30.51 per cent and onions by 12.32 per cent year-on-year.Protein-based item also continued on their recent upward trend, with milk prices becoming dearer by 7.04 per cent and eggs, meat and fish becoming 5.50 per cent costlier.Cereals became dearer by 4.78 per cent, with prices of rice going up by 2.51 per cent.Overall, primary articles prices registered 10.87 per cent inflation during the week under review, compared to 11.60 per cent in the previous week.

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