Food inflation dips to 10.3%

The current decline in the food inflation, is primarily due to improvement in supplies of key food items like pulses, cereals and vegetables.  

However, analysts say the decline by two per cent points in the first week of this month is due to base effect of the corresponding period of last year.  This is the fifth week in a row that food inflation has fallen. It is also the first time after a long gap that food inflation has been lower during a particular period than the corresponding period of the previous year. Food inflation stood at a high of 13.99 per cent in the first week of November last year.

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