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Food inflation falls to 12.85%; down for 3rd week in a row

New Delhi: Sliding for the third straight week, food inflation fell to 12.85% for the week ended 23rd October as prices of vegetables, especially potato and onion, softened due to improved supplies, reports PTI.

Food inflation stood at 13.75% for the week ended 16th October, government data showed.

On an annual basis, potato prices were sharply down by 51.22% and vegetables became cheaper by 4.20%. Also, onion prices eased by 0.13%.

However, other essential items like cereals, milk and fruits continued to remain costly. On an annual basis, cereals prices rose by 4.07% while pulses became costlier by 0.67% on a yearly basis, wheat and rice prices increased by 4.36% and 3.17%, respectively.

Among other food items, milk prices soared by 21.72% during the week compared to the same period last year, while fruits went up by 16.03%.

Eggs, meat and fish became dearer by 28.85% on an annual basis.

Although prices of some perishable food items are easing, demand-supply mismatch persists in several essential commodities.

"Notwithstanding some moderation, food price inflation has remained persistently elevated for over a year now, reflecting in part the structural demand-supply mismatches in several commodities," the Reserve Bank of India (RBI) had said in its second quarter review of monetary policy on Tuesday.

After some moderation in July, food inflation remained high during August and September due to supply disruptions, caused by heavy monsoons.

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