Food inflation declined in the week ended November 6, approaching the much-awaited single-digit figure after many months. This is largely because of an increase in supplies of kharif crops after the monsoon stopped in most parts of the country and major festivals culminated.
According to data released by the ministry of commerce and industry on Thursday, food inflation dropped by two points to record a three-month low of 10.3% for the week ended November 6. In the previous week, food inflation stood at 12.3%.
Analysts and experts said that with an increase in the arrival of kharif corps in mandis across the country in the next few weeks, food inflation is expected to further decline to a single-digit figure soon. It is also after a long gap that food inflation has been lower during a particular period compared to the corresponding period of the previous year. Food inflation stood at at 13.99% during the corresponding period last year.
?Hopefully, with the declining trend, food inflation would be contained at reasonable limits soon,?Ramesh Chand, director, National Centre for Agricultural Economics and Policy Research told FE.
According to an official statement, prices of most food items, barring onions, declined during the week on improved availability after the end of monsoon.
Onions, which saw a sharp rise in prices during the last month due to crop damages in key growing areas because of rains, saw a hike in prices by only 0.63% during the week under review. Not a single food item saw a price rise of over 1% during the week, data showed.
However, on a yearly basis, protein-based food items turned significantly costlier. While prices of eggs, meat and fish rose by over 33%, milk prices jumped by more than 25% and pulses, by 19.4%.