Pranab hopeful of further decline in food inflation

The government today said it is hopeful that food inflation, which is already at single digit level, will come down further.

"Decrease in food inflation is good... I hope it will come down further," Finance Minister Pranab Mukherjee told reporters here.

Food inflation fell to a four-month low of 8.60 per cent for the week ended November 20, as prices of vegetables, wheat and pulses declined on increased output and arrival of kharif crop in the market.

Last time the food inflation was recorded at single digit level was for the week ended July 24, when it came down to 9.53 per cent.

Besides the four-month low, inflation has been dipping for the seven consecutive weeks now.

The fall in food inflation is in line with Chief Economic advisor Kaushik Basu's projection earlier this week that food prices inflation will come down to single digits level, declining beyond 9 per cent for the week ended November 20.

Decline in food inflation has raised hopes that overall inflation may decline to around 6 per cent by the end of the year, as predicted by the government.