Food Inflation Declines To 9.67%

Food Inflation Declines To 9.67%For the week ended July 17, the country's annual food inflation dropped down to single digit at 9.67% for the first time in 2009 as against 12.47% a week earlier, providing relief to an embattled administration confronting a joint opposition attack on growing costs.

Food inflation remained above the 16% level for most part of 2009, before dropping down to below 13% since mid-June.

As per Official facts, the decline was primarily because of the decline in costs of veggies, particularly potatoes and onions.

But, the fuel costs index climbed up to 14.29% reflecting the government's verdict to lift up the rates of petrol, diesel, kerosene and LPG during the last week of the last month.

The primary articles index increased at a slow speed at 14.5% as against the previous week's augmentation of 16.48%.

The measure for total increase in prices, wholesale price inflation, stood at 10.55% during the lat month (June 2010).

Earlier this week, the central banking institution (RBI) hiked key short-term interest rates to handle growing inflation and showed that it would continue with monetary tightening step till inflation is brought in hand.