India: Food inflation falls to 4.35% a 4 year low
NEW DELHI: The sharp fall in vegetable prices in the neighbourhood market is now showing in the food inflation numbers, which fell to a near four-year low of 4.35% in the week-ended December 3, easing the burden on the government which has been battling criticism over the way it has handled the price situation.
The sharp fall from 10.63% in early November, was the result of prices of vegetables, potatoes, onions and wheat falling in the range of 4.43% to 46% due to better supplies. In some commodities such as potatoes which witnessed a 33% decline, farmers in several parts of the country are dumping the crop on the streets or letting it rot as there is a bumper harvest and cold storages are full with last year's stocks. In certain cases such as onions, where prices were down 46% due to the high base seen a year ago also came to the rescue. Milk seemed to be the only sour point with prices rising 11%.
Food inflation stood at 6.6% in the previous week and 10.78% a year ago. The latest weekly food inflation number is the lowest since the week-ended February 23, 2008, when it was 4.28%. Buoyed by the steep decline in food prices, chief economic advisor Kaushik Basu said food inflation may go down below 3% in a month's time. "I expect by the first week of January food inflation will go down below 3%."
Food inflation at 4-yr low of 4.35% - The Times of India
India Food Inflation Slows to Lowest Level in Almost Four Years - Businessweek
NEW DELHI: The sharp fall in vegetable prices in the neighbourhood market is now showing in the food inflation numbers, which fell to a near four-year low of 4.35% in the week-ended December 3, easing the burden on the government which has been battling criticism over the way it has handled the price situation.
The sharp fall from 10.63% in early November, was the result of prices of vegetables, potatoes, onions and wheat falling in the range of 4.43% to 46% due to better supplies. In some commodities such as potatoes which witnessed a 33% decline, farmers in several parts of the country are dumping the crop on the streets or letting it rot as there is a bumper harvest and cold storages are full with last year's stocks. In certain cases such as onions, where prices were down 46% due to the high base seen a year ago also came to the rescue. Milk seemed to be the only sour point with prices rising 11%.
Food inflation stood at 6.6% in the previous week and 10.78% a year ago. The latest weekly food inflation number is the lowest since the week-ended February 23, 2008, when it was 4.28%. Buoyed by the steep decline in food prices, chief economic advisor Kaushik Basu said food inflation may go down below 3% in a month's time. "I expect by the first week of January food inflation will go down below 3%."
Food inflation at 4-yr low of 4.35% - The Times of India
India Food Inflation Slows to Lowest Level in Almost Four Years - Businessweek
its a reality check
