Agriculture Minister Sharad Pawar today said the decline in prices of most agricultural commodities in coming weeks will bring down the food inflation, which is 12.63 per cent now.
“Prices of most agricultural commodities are coming down. It is great relief to consumers. The trend of food inflation will continue to come down in the coming weeks,” Mr. Pawar told reporters on the sidelines of a sugar conference here.
Food inflation declined for the second consecutive week to stand at 12.63 per cent for the week ended June 26. “Food inflation is coming down day by day,” Mr. Pawar said.
However, economists believe that food inflation would continue to remain in double digits for sometime now as the impact of fuel price increase would be seen going ahead.
The government on June 25 raised the prices of petrol and diesel by up to Rs. 3.50 a litre, while that of LPG and kerosene were hiked by 35 per cylinder and Rs. 3 a litre respectively.
Finance Minister Pranab Mukherjee had said earlier this week that the decision would push up overall inflation by less than a percentage point. The overall inflation, which includes food and fuel inflation, was 10.16 per cent in May.