Declining trend in food inflation to continue: Montek

With food inflation moderating for the second week in a row, Planning Commission Deputy Chairman Montek Singh Ahluwalia today forecast continuation of the declining trend.

“I am glad that (food) inflation has come down and I do expect that (the decline) would actually continue,” Mr. Ahluwalia told reporters here.

The food inflation moderated to 11.05 per cent in the first week of February from 13.07 per cent in the previous week.

Ahluwalia said that the spike in food prices witnessed during December and January has been contained.

While he was confident that the declining trend in food inflation witnessed during the past two weeks would continue, Mr. Ahluwalia did not want to hazard a guess on the rate of fall.

“I don’t know exactly at what rate (the food inflation would decline) but I definitely expect it to come down,” he added.

Earlier in the day, Finance Minister Pranab Mukherjee too expressed confidence the food inflation would soon come down to single digit.

It has been in double digits since the second week of December.