Food inflation slides to 17.81pc, fuel prices rise in India
Sunday, 14 March 2010
NEW DELHI, Mar 112 (PTI): Food inflation eased a bit to 17.81 per cent during the last week of February, but may not soothe overall inflation as petrol and diesel prices have risen sharply following the hike in duty rates.
While food prices are expected to moderate further in the weeks ahead, the overall inflation may hit double digits by fiscal end as manufactured and fuel prices are going to get costlier, say experts.
Food inflation declined by 0.06 per centage points during the week ended February 27 from 17.87 per cent in the previous week.
Though a range of essential items still continue to be expensive, the rate of price rise has fallen in the past few weeks.
On year-on-year pulses were dearer by 33.38 per cent, slightly lower than over 35 per cent in the previous week, while potatoes turned costlier by 22.46 per cent. Onion rose by just 2.98 per cent.
The declining trend, if sustained, would buttress the government's confidence that prices will start easing from April onwards, but a lot depends on Rabi (winter) crops, say experts.
"Food inflation will moderate. However, other inflation like fuel and manufactured inflation will firm up, also because of low inflation last year," Crisil principal economist D K Joshi said.
He said overall inflation will reach 10 per cent by March- end.
While food prices are expected to moderate further in the weeks ahead, the overall inflation may hit double digits by fiscal end as manufactured and fuel prices are going to get costlier, say experts.
Food inflation declined by 0.06 per centage points during the week ended February 27 from 17.87 per cent in the previous week.
Though a range of essential items still continue to be expensive, the rate of price rise has fallen in the past few weeks.
On year-on-year pulses were dearer by 33.38 per cent, slightly lower than over 35 per cent in the previous week, while potatoes turned costlier by 22.46 per cent. Onion rose by just 2.98 per cent.
The declining trend, if sustained, would buttress the government's confidence that prices will start easing from April onwards, but a lot depends on Rabi (winter) crops, say experts.
"Food inflation will moderate. However, other inflation like fuel and manufactured inflation will firm up, also because of low inflation last year," Crisil principal economist D K Joshi said.
He said overall inflation will reach 10 per cent by March- end.