Food inflation, as measured by the Wholesale Price Index, was on a declining trajectory for the previous three weeks.
Food prices fell for the second consecutive week as food inflation remained in the negative zone at (-)2.90 per cent for the week ended December 31, 2011.
According to official data released on Thursday, onions grew cheaper by 59.04 per cent year-on-year during the week under review, while potato prices were down by 33.76 per cent.
Food inflation fell sharply to a near four-year low of 1.81 per cent for the week ended December 10 as prices of essential items like vegetables, onion, potato and wheat declined.
Inflation, as measured by the Wholesale Price Index, was 7.55 per cent in May. In June last year, it was 9.51 per cent.
According to data released by the government on Thursday, onions became cheaper by 39.20 per cent year-on-year during the week under review, while potato prices were down by 15.75 per cent.
Continuing decline in food prices, including vegetables, pulled wholesale price inflation to a five year low of 1.77 per cent in October.
Food inflation, as measured by the Wholesale Price Index, stood at 11.81 per cent in the previous week ended October 29.
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Food inflation was recorded at 9.23 per cent in September.
Overall food inflation rose to 10.74 per cent in May, from 10.49 per cent in the previous month. Food articles have 14.3 per cent share in the WPI basket.
The rate of price rise of food items stood at 12.68 per cent in the corresponding week of the previous year.
Data showed the country's wholesale price-based inflation eased to an eight-month low in January as food prices moderated, offering some relief to policymakers who have long battled to get a handle on surging prices.
Eggs, meat and fish also became 13.36 per cent more expensive on an annual basis, while cereal prices were up 4.13 per cent.
In August, wholesale prices rose 3.74 per cent year-on-year.
The government's annual Economic Survey on Friday strongly defended new farm laws, saying they herald a new era of market freedom which can go a long way in improving lives of small and marginal farmers in India. These legislations were designed "primarily" for the benefit of "small and marginal farmers", which constitute around 85 per cent of the total number of farmers and are the biggest sufferer of the "regressive" APMC-regulated market regime, the survey said. The pre-budget document defended the farm laws in the backdrop of long-running farmers' agitation at various borders of the national capital seeking repeal of these legislations expressing concern that they are pro-corporate and could weaken government regulated mandis, also called Agriculture Produce Marketing Committees (APMCs).
Food inflation, as measured by Wholesale Price Index, stood at 9.13 per cent in the previous week.
Finance Minister Pranab Mukherjee termed the rise in food inflation as an area of 'grave concern'.
Prices of most commodities, barring wheat, continued to remain firm on an annual basis, as per Wholesale Price Index data released by the government in New Delhi.
The rate of price rise stood at 8.87 per cent in August, 2010.
Overall inflation, as measured on the basis of the Wholesale Price Index, has been revised to 9.04 per cent for March from the original projection of 8.98 per cent.
As per the official data released on Monday, inflation in food items was 9.94 per cent in March, as against 6.07 per cent in February.
In separate petitions filed at the Telecom Disputes Settlement and Appellate Tribunal, ESPN Software India, MSM Discovery, Zee Turner and Star Den Media Services said the tariff suggested by the sectoral regulator was not commercially viable.
Industry chamber Assocham on Monday said that 2011 may witness continuation of high inflationary pressures, a view contrary to the government that expects inflation to slow down to around 6 per cent by March next year.
RBI's unique focus on WPI inflation is misguided even as demand-driven factors have become relatively less important.
In its 'Asia Economic Alert', the banking and asset management behemoth also said that the Reserve Bank is likely to hike the short-term lending (repo) rate by 100 basis points in 2011 with the purpose of curbing inflationary pressure.
Ahead of the monetary policy review on May 3, Reserve Bank of India (RBI) Deputy Governor Shyamala Gopinath said inflation was a concern, mainly on account of the high prices of non-food manufacturing goods.
On an annual basis, prices of food articles went up by 8.19 per cent in July, which is lower than the 8.38 per cent inflation recorded in June.
Hardening prices of manufactured items during the month may refrain the Reserve Bank of India from cutting rates in its policy review on February 8.
The decline could also be attributed to the high inflation figure of 18.56 per cent for the corresponding year-ago period, a phenomenon dubbed the 'high base effect' in economic parlance.
Headline inflation rose to 9.44 per cent in June on the back of rising prices of fuel and manufactured products, which may prompt the Reserve Bank to raise key rates again in its quarterly policy review later this month.
RBI says food supply constraints to taper off only over time.
The wholesale price-based inflation had shot passed 10 per cent in May putting more pressure on the Central Bank to hike the policy rates.
As per data released by the government on Thursday, pulses became over 9 per cent cheaper year-on-year during the period under review.
Food inflation, as measured by the Wholesale Price Index, stood at 9.13 per cent during the previous week.
Inflation declined to 5.30 per cent for the week ended November 25 from 5.45 per cent in the previous week, mainly because of fall in the prices of food items.
The NSE index Nifty ended above the 10,500-mark.
It was almost 23 per cent during the second week of June, 2010.
Inflation declined marginally to 8.23 per cent in January from 8.43 per cent in the previous month, as prices of certain commodities like wheat, pulses and sugar eased, although essential items like onion and other vegetables continue to remain dearer.
The latest numbers are the highest level of food inflation since the week ended March 26 when it had stood at 9.18 per cent.
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