New Delhi, July 1 (IANS) India’s annual food inflation slowed to 12.9 percent for the week ended June 19 due to what analysts said a weakening base effect.
The food inflation was at 16.9 percent during the previous week.
A 40 per cent fall in potato prices and 7 per cent decline in onion prices and single-digit rises in cereal, wheat and rice prices helped to weaken the food inflation.
Data released by the commerce and industry ministry Thursday showed the index for primary articles was up at 14.75 percent, with the sub-index for non-food items slowing at 18.8 percent.
The fuel prices too fell at 12.9 percent, compared to 13.18 percent for the week ended June 12.
Following are the rise and fall in prices of some of the main commodities that form the sub-index for food articles over the past 52 weeks:
Cereals: 5.36 percent
Rice: 6.44 percent
Wheat: 4.49 percent
Pulses: 31.57 percent
Vegetables: 1.17 percent
Fruits: 8.74 percent
Milk: 15.91 percent
Potatoes: (-)39.61 percent
Onions: (-)7.36 percent
The slowdown in inflation is due to a significantly higher base during the same period last year.
However, any real change in prices at the retail level is very much dependent on a normal monsoon, which so far has been slow. And many grain producing regions in the north and eastern parts of the country have not received adequate rainfall.
Also, the government’s decision to free auto fuel prices and the resultant hike last week will mean that there will be a spike in inflation, at least in the short term.
Finance Minister Pranab Mukherjee has said there will be some inflationary pressure and according to the chief economic advisor, the direct effect on inflation would be to the extent of 0.9 percent.
