Food inflation eased sharply in early September, with cereals, vegetables and fruits trending lower. A high base effect too contributed to the downward trend in food inflation. Non-food items too saw lower year-on-year inflation, while the fuels group recorded an upsurge.
Food inflation, based on the annual Wholesale Price Index, for the week ended September 10 rose 8.84 per cent against the previous week’s annual rise of 9.47 per cent, according to data released by the Government on Thursday. Primary articles inflation rose 12.17 per cent; lower than the previous week’s annual rise of 13.04 per cent.
Fuel group inflation surged 13.96 per cent against the previous week’s annual rise of 13.01 per cent. The nationwide petrol price hikes earlier this month are likely to further push the fuel inflation figure in the coming weeks.
Food inflation has been hovering near the double-digit mark since July-end and even went above 10 per cent for a week in mid-August. Headline inflation for August climbed to a 13-month high of 9.78 per cent. The Reserve Bank of India has already hiked policy rates 12 times since March, 2010, to tame demand but headline inflation remains at more than twice the bank's stated comfort level.