Food inflation eases, but fuel prices keep up pressure

The easing in food prices has been marred by rising fuel inflation, giving no respite to the overall inflation level that has been consistently rising since it came out of sub-zero levels in September last year

Food inflation fell to 16.3% for the week ended 6th March on easing prices of pulses and vegetables, but fuel inflation shot up to 12.68%, reports PTI.

For the previous week, food inflation was at 17.8% and fuel inflation at 11.4%.

Vegetable prices showed a marked decline of more than 10% over the week, followed by about 4% fall in prices of pulses. Urad and arhar prices were down 6% each during the week.

However, the easing in food prices has been marred by rising fuel inflation, giving no respite to the overall inflation level that has been consistently rising since it came out of sub-zero levels in September last year.

The fuel index comprising fuel, power, light and lubricants saw an inflation of 12.68% over the week led by 16.8% inflation in petrol prices and 14.99% in diesel prices.

The rise in fuel prices is a result of the budgetary announcement of a hike in excise and customs duty on petrol and diesel.

Overall inflation has risen to 9.89% for February from a low of 1.34% in October last year, primarily led by high food prices.

Inflation has already breached the RBI's projection of 8.5% for the fiscal-end in January when it touched 8.56%.
 

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