Food inflation fell to its lowest level in 20 months at 7.33 per cent for the week ending 16 July on the back of cheaper pulses, even as other items grew more expensive. Food inflation, as measured by Wholesale Price Index (WPI), stood at 7.58 per cent in the previous week.
The decline could also be attributed to the high inflation figure of 18.56 per cent for the corresponding year-ago period, a phenomenon dubbed the 'high base effect' in economic parlance. The latest figure is the lowest since separate data for food inflation was first released in November, 2009.
During the week under review, prices of pulses fell by 8 per cent year-on-year. However, prices of other items went up. Onions became more expensive by 22.66 per cent and fruits became 13.90 per cent dearer on an annual basis.
Potatoes became 10.55 per cent costlier, while milk was up 9.96 per cent. Vegetable prices were up by 7.59 per cent year-on-year.
Overall, primary articles recorded inflation of 10.49 per cent for the week ended July 16, down from 11.13 per cent in the previous week. Primary articles have a share of over 20 per cent in the WPI. However, inflation of non-food articles went up to 16.05 per cent from 15.50 per cent in the previous week. Furthermore, fibres became more expensive by over 28 per cent and oil seeds were up 13.72 per cent. Minerals became dearer by 23.12 per cent year-on-year. Meanwhile, the index for fuel and power stood at 12.12 per cent.
