Inflation dips marginally but vegetable prices high

After a gap of almost two months, inflation dipped marginally to 0.7 per cent, but there was no respite for people as prices of items of common consumption, like potato and vegetables, continued to rule high.

The 13-basis-point slide in the inflation rate, which was over 0.83 per cent in the previous week, was on account of a slight easing of prices of certain items like poultry chicken, bajra, fruits, arhar and spices.

The common man has been hit hard by the rising prices of potatoes and vegetables, which have soared by 81 per cent and 43 per cent, respectively, in the past one year. At the same time, pulses have got dearer by 20 per cent and rice by 17 per cent.

The wholesale price-based inflation rate was at 0.83 per cent in the previous week, compared to 12.08 per cent during the corresponding week a year ago.

Food prices are likely to go up in the coming weeks, as floods in Karnataka and Andhra Pradesh have destroyed crops, analysts said.

Commenting on inflation, Planning Commission Deputy Chairman Montek Singh Ahluwalia had said: “Food price inflation is the principal area of inflation, which is a cause of concern. But one cannot really say it has triggered inflation, as overall inflation is very low.”