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Food inflation softens

Mumbai: Food inflation softened to 18.65 per cent for the week ending December 12, though essential items like potato and pulses continued to remain expensive. The food inflation declined by 1.30 percentage points during the second week of December from 19.95 per cent in the previous week. Potato prices remained high recording an increase of 115 per cent on a year-on-year basis, followed by pulses which became dearer by 41.61 per cent. Vegetables as a whole turned expensive by 37.97 per cent. The inflation for primary articles, which include food, cereals and fuel, rose to 14.66 per cent in the reporting week.

The price index for food articles declined by 1.2 per cent during the week mainly on account of decline in prices of fruits and vegetables, wheat, bajra, spices and tea. Among non-food items, prices of tobacco rose by 33 per cent, raw cotton by 6 per cent while raw rubber became expensive by 4 per cent.

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