India's Food Inflation Declines To 16.61%

India's Food Inflation Declines To 16.61%For the week ended April 17, the country’s annual food inflation dropped to 16.61% as compared to 17.65% a week ago owing to a drop in prices of fruits, veggies and common cereals.

Data on the wholesale price index (WPI) issued by the commerce and industry ministry showed the index for food articles declined by 0.2% in the period under review.

But, the index for non-food good increased by 0.8%.

Considering the year as a whole, the rates of pulses, wheat, rice, milk, cereals and rice climbed further this week. Rates of potatoes and onions, however, came down.

In the non-food articles category, fuel, fibre, and oil seeds were ruling up as against the levels witnessed during the last year.

Following are the rise and fall in rates of some vital food items over the 52-week period:

- Pulses: 29.89%
- Milk: 22.21%
- Fruits: 9.75%
- Rice: 9.06%
- Cereals: 8.39%
- Wheat: 7.38%
- Potato: (-)28.16%
- Onions : (-) 9.95%

The novel data came a day after Finance Minister Pranab Mukherjee promised parliament that every possible action would be taken to control price increase.

He said that inflation would ease as there were signs of a decrease in food prices, which have been driving it.

Mr. Mukherjee said, “Indications of softening of food inflation are clearly visible... It is expected that this decline would continue in the recent months uninterruptedly. The outlook is further brightened by the fact that a normal monsoon is predicted this year.” (With Inputs from Agencies)