Food prices dip further to -2.90%
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.
Food inflation, as measured by the Wholesale Price Index (WPI), stood at (-)3.36 per cent in the previous week. It was above 19 per cent in the corresponding week of 2010. The fall in the rate of price rise of food items since the first week of November is substantial, as it has plummeted from double-digit territory into the negative zone.
Inflation in the overall primary articles category stood at 0.51 per cent during the week ended December 31, as against 0.10 per cent in the previous week.
Primary articles
Primary articles have over 20 per cent weight in the wholesale price index. Headline inflation, which also factors in manufactured items, has been above the 9 per cent-mark since December, 2010. It stood at 9.11 per cent in November, 2011.
The central bank has said it expects inflation to remain elevated till December on account of the demand-supply mismatch before moderating to 7 per cent by March, 2012.
