Food inflation falls to 10.5 per cent

food inflationThe food inflation came down yet again for the second week easing down to 10.05 percent for the week ended August 14. It had been 10.35 per cent in the previous week, mainly because of a decrease in vegetables prices like in the case of potatoes and onions.

During the same week last year, the food inflation had been at 13.45 per cent. As on a year-on-year basis, the price of potatoes comes down and down by more than 50 per cent and onions by 7.29 per cent, the food inflation level was anticipated to decrease.

In total, the price of vegetable has decreased by 14.23 per cent, as mentioned in an official data.

In spite of the anticipated reduction in food inflation during the previous quarter of the present year, the still high non-food inflation continues to remain a matter of concern.

The overall WPI based inflation has reduced to 9.97 per cent in July, but it is still beyond desired limits and it is expected by the government that it will stabilize at around six per cent by the end of the year.