Food inflation dips at 9.52%

Food inflation dips at 9.52%

Food inflation fell by 0.87 percentage points from 10.39 per cent in the previous week. It has fallen to a single-digit figure for the first time since the week ended December 4, 2010, when it stood at 9.46 per cent.

“Food inflation in single digit... It will come down to below 7 per cent by the end of March,” Prime Minister’s Economic Advisory Council Chairman C Rangarajan said. Asked whether the decline in food inflation would prompt RBI to relax its monetary policy in its next quarterly review later this month, he said the apex bank would have to keep the ongoing building up of  inflationary expectation due to rise in global commodity and crude oil price in mind. Headline inflation stood at 8.23 per cent in January and the government has exuded confidence that it will fall to 7 per cent by March-end.