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Rediff.com  » Business » Inflation falls to 9.97% in July

Inflation falls to 9.97% in July

Source: PTI
Last updated on: August 16, 2010 13:06 IST
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Wholesale price-based inflation fell to single digit at 9.97 per cent in July, owing to decline in prices of certain food and non-food items.

The inflation was at 10.55 per cent in June, while for April it was revised upwards to 11.14 per cent from the provisional number of 10.16 per cent.

Inflation was in double digits at over 10 per cent in the last four months to June. In July, onion prices dipped by 6.85 per cent, while edible oils became cheaper by 0.34 per cent compared to the same period last year.

Vegetable prices fell by over 14 per cent and that of potato by over 44 per cent on year-on-year basis.

Cement prices fell by 8.36 per cent and that of non-metallic mineral products by 4.81 per cent on yearly basis.

The food index rose marginally by 0.9 per cent as the impact of decline in prices of potato, onion and other vegetables was somewhat neutralised by rise in prices of cereals (6.17 per cent), rice (6.28 per cent), pulses (21.98 per cent) milk (18.06 per cent) and fruits (9.52 per cent) on yearly basis.

Among primary (raw) food items, moong became cheaper by 4 per cent, while masur, arhar and fish-marine by one per cent each compared to same period last year.

Food inflation had surged back to double digit at 11.40 per cent for the week ended July 31, after remaining in single digit for two consecutive weeks.

In July, the fuel index rose by 3.2 per cent due to higher prices of kerosene (24 per cent) and liquefied petroleum gas (8 per cent).

The government had in late June decontrolled the prices of petrol and increased prices of diesel, LPG and kerosene.

However, the prices of furnace oil declined by 2 per cent and that of naphtha and light diesel oil by one per cent each.

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