An elated Finance Minister Pranab Mukherjee said if the trend continued, there would be moderation in inflation in coming weeks.
"If these trends continue for the next two weeks for the month of November, I hope there will be moderation in inflation and it will have an impact on the year-end inflationary figures," Mukherjee told reporters here. Food prices eased despite an upward spiral in the prices of most of the farm commodities, barring potatoes, onions and wheat.
Food inflation, as measured by the Wholesale Price Index was 10.63 per cent in the previous week. It stood at 11.38 per cent in the corresponding week of the previous year. According to the data on food inflation, onions became cheaper by 32.85 per cent year-on-year, while potato prices were down by 7.23. Price of wheat also fell by 3.09 per cent.
“Normally, I do not have much confidence in the weekly figures. But if the trend continues, let us hope for the best,” the Finance Minister said.
Barring onions and potatoes, other vegetables became 17.66 per cent costlier. Pulses grew
dearer by 14.28 per cent, milk by 10.46 per cent and eggs, meat and fish by 11.98 per cent for the week under review.
Inflation in the overall primary articles category stood at 9.08 per cent during the week ended November 12, as against 10.39 per cent in the previous week. The headline inflation has remained in the upward bound of 9 per for most part of the year and the government is fighting relentlessly to to bring it down to 6-7 per cent by the end of the fiscal.
The major contributors to food inflation, which are protein products like milk, chicken, eggs, lamb, seafood and so on, are yet to show signs of price moderation.