Food inflation fell to nearly a four-year low at 4.35 per cent for the week ended 3 December 2012 due to significant fall in prices of wheat and vegetable owing to seasonal factors. Onions became cheaper by 46.03 per cent year-on-year during the week under review, while potato prices were down by 33.28 per cent.
While vegetables, on the whole turned cheaper by 12.28 per cent, prices of kitchen staples such as onions and potatoes slumped by 46.03 per cent and 33.28 per cent on a year-on-year basis. What prices also eased by 4.43 per cent.
The WPI (wholesale price index) food inflation moderated from 6.6 per cent in the week ended 26 November. food inflation was at 10.78 per cent in the same week of 2010. However headline inflation in November 2011 remained unacceptably high at 9.11 per cent.
Chief Economic Advisor Kaushik Basu, who chairs the Inter-Ministerial Group (IMG) on tackling the price spiral, reiterated that food inflation would go down to 3 per cent by early January 2012 as the slew of policy measures had begun to show effect.
The food inflation for the week ended 3 December 2011 was the lowest since the week ended 23 February 2008, when it was 4.28 per cent.
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