India’s food inflation, which is calculated on the bases of the Wholesale Price Index (WIP), has declined to its lowest level in six years and prompted Finance Minister Pranab Mukherjee to express that the overall inflation might fall to the level of 6 per cent soon.

According to the latest data released, the food inflation in the country has fallen significantly to the level of 0.42 per cent during the week till 17 December. The food inflation was recorded at 1.81 per cent that is at nearly its lowest in four years. The food inflation eased due to the improved supplies of essentials and a low base. The prices of essential items like vegetables, onion, potato and wheat declined.

According to the latest data released by the government, the prices of onions fell 59.04 per cent year-on-year during the week, potato prices were down by 33.76 per cent and wheat fell by 3.30 per cent. The overall prices of vegetables fell 36.02 per cent in the week.

On the other hand, other food items including Pulses become more expensive year on year. The prices of pulses increased 14.07 per cent during the week under review, while milk grew dearer by 11.30 per cent and eggs, meat and fish by 11.56 per cent. Fruit prices rose 8.46 per cent and the prices of cereals were up 2.15 per cent. The primary articles price index rose 2.70% compared to 3.78% in the previous week.

Analysts say that the fall in inflation is due to a good kharif harvest as well as a high base. The fall comes as a relief to the government and the central bank, the Reserve Bank of India (RBI). The RBI had increased its key interest rates more than more than a dozen times since March last year in order to control inflation, which remained high in recent months.