Econintersect: Food inflation in India fell to 1.8% in early December, the lowest rate in nearly four years. The word collapse is very appropriate because the inflation rate for food had been double digits for more than a year up to early November. One year ago the latest week’s corresponding data stood at more than 13% food inflation rate. According to The Times of India, the last time food inflation was near 2% was in early 2008 when the value stood at 2.26% for the week ended February 9, 2008.
Onions, which have been especially volatile in price, saw prices 49% cheaper than one year ago for the week ended December 10. Other price changes from The Times of India:
Overall, vegetables became cheaper by 26.37 per cent. Experts feel the sharp fall in food inflation numbers, which was in double-digit till the first week of November, comes as a big relief to both the government and the Reserve Bank who have been battling high prices for over two years.
However, other food products grew more expensive on an annual basis, led by protein-based items. Pulses became 14.22 per cent costlier during the week under review, while milk grew dearer by 11.19 per cent and eggs, meat and fish by 9.25 per cent.
Fruits also became 8.89 per cent more expensive on an annual basis, while cereal prices were up by 1.68 per cent.
Source: The Economic Times
Hat tip to Sanjeev Kulkarni