Food Inflation Fell to a Single-digit at 9.55 Percent As per data Released by the Government

Food inflation fell to a single-digit at 9.55 per cent for the week ended August 27 after breaching the double-digit mark in the previous week. Food inflation, as measured on the basis of the Wholesale Price Index (WPI), stood at 10.05 per cent in the previous week. The rate of price rise of food items was 14.76 per cent in the corresponding week of 2010. As per data released by the government on 8 September 2011, prices of pulses fell by 1.56 per cent year-on-year, while wheat became cheaper by 1.04 per cent during the week ended August 27.

However, other food items became more expensive during the week under review. The fall in food inflation could be attributed to a moderation in the rate of price rise of some of the items on a week-on-week basis, even though they continued to go up.