Food inflation moves down because of cheaper vegetables
There is no denying the fact that Inflation has been the biggest worry in the dream run of the Indian economy from the past many months now both for the government officials and for the consumer but as the food inflation index is based on the annual Wholesale Price Index, it has recently eased a little.
It is to be mentioned here that the food inflation index has cooled off a bit after rising for five straight weeks and as the year-on-year food inflation rate rose to 16.24 per cent during the week ended September 25, the level was still lower that the 16.44 per cent mark, the previous week annual rise.
Experts are if a view that the fall has been mainly because of the sharp decline in certain vegetables, especially potato. But on the other end, the fuel inflation index has remained steady.
However, as per the data issued on Thursday by the Ministry of Commerce and Industry, potatoes have dipped by 50% YoY. But the data also suggested the fact that commodities like cereals, milk and fruits have only moved northwards over the past week.