Food prices fell for the second consecutive week as food inflation remained in the negative zone at (-)2.90 percent for the week ended December 31, 2011.
Food inflation, as measured by the Wholesale Price Index (WPI), stood at (-)3.36 percent in the first week of January. It was above 19 percent in the corresponding week of 2010.
According to data released, onions became cheaper by 74.77 percent year-on-year during the week under review, while potato prices were down by 31.97 percent. Prices of wheat also fell by 3.35
percent.Overall, vegetables became 49.03 percent cheaper during the week ended December 31.
Headline inflation, which also factors in manufactured items, has been above the 9 percent-mark since December, 2010. It stood at 9.11 percent in November, 2011.
In its second quarterly review of the monetary policy last month, the central bank had said it expects inflation to remain elevated till December on account of the demand-supply mismatch before moderating to 7 percent by March, 2012.
