FOOD INFLATION RATE SLOW DOWN TO 16.30%
The current food inflation rate has declined from 17.8% to 16.30% for the week ended March 6th.The decline is due to the decrease in the prices of vegetables and pulses. Prices of vegetables like onion and potatoes has come down to 11.08% and 3.5%.The pulse have also become cheaper. Sugar prices have come down due to higher production estimates in major producing states like Maharashtra and Uttar Pradesh. In the beginning of the year 2010, the food inflation rate marginally rose to 17.8% and this rise was due to the due to poor harvest. The highest inflation was in the year in year 1972 which was 25% and this was due to the poor integration of price policies and economic policies, import of beef and poor harvest. But the fuel inflation rate has gone up to 12.68%. It has been anticipated that the food inflation rate is likely to be the same for some period of time and rise when there is hike in the prices of diesel and petrol.