Food inflation back in single digit after 18 months

The food inflation rate fell to single digit after 18 months to 8.6 per cent for the week ended November 20, primarily due to falling prices of essential commodities like rice, wheat and cereals on increased supplies.

Food inflation, as measured by the Wholesale Price Index (WPI), stood at 10.15 per cent during the previous week, and at 18.71 per cent during the corresponding period last year.

Finance Minister Pranab Mukherjee has expressed optimism that food inflation will come down further in the coming weeks. “Decrease in food inflation is good…I hope it will come down further,” he said today.

Chief Economic Advisor Kaushik Basu also said the headline inflation for November, due for release on December 14, would show moderation. Earlier this week, he had projected that food prices would fall to single digit for the week ended November 20.

High statistical base of last year has also played a significant role in bringing the food inflation rate down during the week under consideration. Fuel inflation also came down to 9.99 per cent during the week from 10.57 per cent in the previous week. The inflation rate came to the single-digit level after 41 weeks.