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Food inflation eases to 10.05 pc; Monsoon to soften it further

Thursday, August 26, 2010 08:02:41 PM, PTI

New Delhi: Food inflation moderated for the second straight week in mid-August to 10.05 per cent as vegetables turned cheaper, but analysts said price volatility will continue till October when fresh crops arrive in markets.

Inflation in food items dipped marginally from 10.35 per cent in the previous week. It was 13.45 per cent in the same period last year and had crossed 20 per cent in December 2009.

On year-on-year basis, potato became cheaper by over 50 per cent, while vegetables overall saw a decline of 14.23 per cent. Onion prices fell by 7.29 per cent, official data released today showed.

Experts said food prices would ease further going ahead as normal monsoon would result in good kharif harvest.

"Food prices are on a declining trajectory, although some volatility in the mid course would be witnessed.















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