Food inflation declined to single digit at 9.67 per cent for the first time in the current year, news that would give some respite to the government that has been facing criticism over its failure to control prices of food articles and vegetables.
Food inflation remained above the 16 per cent-level for most part of last year, before falling to below 13 per cent since mid-June.
According to latest data issued by the Ministry of Commerce and Industry, inflation fell by 2.80 percentage points for the week ending July 17 from 12.47 per cent in the previous week, mainly due to decline in the prices of vegetables, especially potatoes and onions. However, the fuel prices index rose to 14.29 per cent following a hike in the prices of petrol, diesel, kerosene and cooking gas, announced last week.
Overall inflation, which includes prices of manufactured goods, was 10.55 per cent in June, led by high food prices.
The primary articles index rose at a slower pace to 14.5 per cent, compared to the previous week's increase of 16.48 per cent. On an annual basis, prices of potatoes declined by 46.05 per cent, while that of vegetables by 14.77 per cent and onions by 10.25 percent.
Important items whose prices went up include pulses (21.23 per cent), milk (19.03 per cent), fruits (12.14 per cent), wheat (6.27 per cent), cereals (5.62 per cent) and rice (5.31 per cent).
