Food inflation on declining trend

Bringing some respite, the food inflation for the week ended January 1, 2011, showed a declining trend after being on the rise for the five previous weeks.

Latest reports on Thursday said that the food inflation stood at 16.91 per cent for the week ended January 1, 2011, against 18.32 per cent for the previous week.

However, several food items, including vegetables and onions, continued to be costlier.

Vegetable prices soared by 70.73 per cent on an annual basis in the wholesale market while onions cost 70.70 per cent more on a year on year basis.

Egg, meat, fish, milk and fruits remained on an increasing cost trend, though prices of pulses, wheat, potatoes and cereals came down.

Soaring vegetable and onion prices had led to rising food inflation for the December month, drawing criticism for the government.