Food inflation, based on the annual Wholesale Price Index, eased marginally to 8.96 per cent during the week ended June 4. It was down from the previous week's year-on-year rise of 9.01 per cent.

DOWNTREND

The drop was aided by a downward trend in items such as pulses and vegetables.

Fuels, however, climbed 12.84 per cent during the latest reported week, higher than the 12.46 per cent annual rise recorded in the previous reported week, Government data showed on Thursday.

The weekly food inflation has declined after staying in double digits for much of 2010, but headline inflation at 9.06 per cent in May remains considerably above the central bank's comfort level.

During the week under review, inflation in pulses was down over 10 per cent year-on-year, while vegetables slid 1.39 per cent.

FRUITS COSTLIER

However, price levels of other food items continued to rule high . Fruits surged 30 per cent, while milk was up 11 per cent. Eggs, meat and fish gained over 7 per cent on an annual basis.

Onions inched up over 12 per cent and potatoes over 1 per cent. Cereals increased 5 per cent.

Overall, annual inflation in the primary articles group stood at 12.86 per cent during the week under review, up from the 11.52 per cent year-on-year rise reported in the previous week. Primary articles have a share of 20 per cent in the overall WPI basket. Inflation in non-food primary articles stood at 20.20 per cent during the week under review, a slight dip from 20.97 per cent in the previous week. Fibres surged nearly 54 per cent and minerals were up 26 per cent, according to the data.

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