Food inflation eases to 12.63%; fuel prices up 18%

Annual food inflation eased to 12.63 per cent for the week ended June 26, but fuel inflation shot up to 18.02 per cent after the hike in rates of petroleum products.

The rate of price rise of food items was 12.92 per cent in the previous week ended June 19.

Vegetable prices fell by over 4 per cent year-on-year, led by a massive decline in rates of potato and onion. Potato became cheaper by over 42 per cent, while onion by 8.75 per cent on an annual basis.

Fuel inflation for the week under review, however, rose sharply to 18.02 per cent after the impact of fuel price hike by the government on June 25. Prices of petrol and diesel raised by up to Rs 3.50 a litre, while that of LPG and kerosene were hiked by 35 per cylinder and Rs 3 a litre respectively.

Fuel inflation for the week ending June 19 stood at 12.90 per cent.

Overall inflation for May was 10.16 per cent, led by high food prices.

However, it had fallen sharply for the week ended June 19 to 12.92 per cent, from 16.90 per cent in the week ago.