India?s food inflation for week ending March 6 dropped to a four-month low of 16.30% largely on account of falling prices of vegetables, pulses, and sugar. However, milk prices have become costlier by 15.31% during the week.
Food inflation came down by 1.51 percentage points from 17.81% in the week before March 6, on account of decline in prices of vegetables, especially onions and potatoes, as per the Wholesale Price Index (WPI) of primary products.
Prices of onions fell 11.08% in the wholesale market over the previous week and that of potatoes by 3.5%.
Overall vegetables prices during the same period dropped by 10.51%, while pulses became cheaper by 3.85%.
Food inflation had last touched a below-16% level for the week ending November 15, 2009, when it had dropped to 15.58%. ?Food prices are coming down. Sugar prices have come down due to higher production estimates in major producing states like Maharashtra and Uttar Pradesh,? Agriculture and Food Minister Sharad Pawar told reporters.
Though food prices are falling on a weekly basis, they are still high for most commodities except onion when compared to the corresponding period last year.
RBI in its annual credit policy to be announced on April 20 will try to address the twin objectives of protecting growth and contain rising prices. On annual basis fuel prices rose by 12.68 per cent, mainly on account of the increase in duties in the budget. Following the duty increase prices of petrol and diesel went up over Rs 2.50 a litre.