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India’s food inflation declines to 8 percent on account of low onion and potato prices

India’s food inflation declined to to 8 per cent for the week ended November 19. Food inflation, as measured by the Wholesale Price Index (WPI), was 9.01 per cent in the previous week ended November 12. It stood at 9.03 per cent in the corresponding week of the previous year.

The main contributor to this moderation in inflation were onions that became cheaper by 40.65 per cent year-on-year during the week under review, and potato whose prices were down by 10.98 per cent. Price of wheat also fell by 4.71 per cent. However, all other food items grew more expensive on an annual basis.

Inflation in the overall primary articles category stood at 7.74 per cent during the week ended November 19, as against 9.08 per cent in the previous week. Pulses became 13.80 per cent costlier during the week ended 19th November, while milk grew dearer by 11.41 per cent and eggs, meat and fish by 13.55 per cent.
 
Vegetable prices were up by 5.13 per cent year-on-year. However, this marked a substantial slowdown in the inflation rate in comparison to the past few months, when prices of vegetables had witnessed double-digit growth.
 
Fruits also became 7.98 per cent more expensive on an annual basis, while cereal prices were up 1.97 per cent.
 
Inflation in the overall primary articles category stood at 7.74 per cent during the week ended 19th November, as against 9.08 per cent in the previous week. Primary articles have over 20 per cent weight in the wholesale price index.
 
Inflation in non-food articles, which includes fibres, oilseeds and minerals, was recorded at 2.14 per cent during the week under review, as against 4.05 per cent in the week ended 12th November.

Inflation in non-food articles, which includes fibres, oilseeds and minerals, was recorded at 2.14 per cent during the week under review, as against 4.05 per cent in the week ended November 12.

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