Food inflation showed a sharp decline in early November, with items such as cereals, onions, milk and poultry products seeing a dip in year-on-year price levels. Non-food inflation too eased a bit, even as the fuel index climbed sharply.
According to data released by the Government on Thursday, the annual WPI-based food inflation rose 10.63 per cent, down from the previous week's annual rise of 11.81 per cent.
Sequentially, the ‘Food Articles' group index declined by 0.9 per cent. Inflation in fuels climbed 15.49 per cent in the week ended November 5, sharply higher than the 14.50 per cent in the previous week.
Responding to the dip in food inflation estimates by over a percentage point, the Finance Minister, Mr Pranab Mukherjee, said if the trend continues some relief could be expected on the price front soon. “At least on the food front, we may expect to have some relief if the trend continues.”
During the latest week, inflation in onions eased by 23 per cent year-on-year, while wheat was down 4 per cent. However, most other items surged on an annual basis during the week. Notably, vegetables were up 27 per cent, pulses up 14 per cent, milk by 11 per cent and eggs, meat and fish by 12 per cent.
Annual inflation in non-food articles, including fibres, oilseeds and minerals, was recorded at 5.33 per cent during the week under review against 6.41 per cent in the week ended October 29. Fuel and power inflation clocked in at 15.49 per cent compared with 14.50 per cent in the previous week.
In its second quarterly review of the monetary policy last month, the RBI had said it expects inflation to remain elevated till December on account of the demand-supply mismatch, before moderating to 7 per cent by March.