Inflation at near zero level, food items an area of concern
Inflation at near zero level, food items an area of concern
Inflation touched a new low in over 30 years, although vegetables prices are 25 per cent higher than they were a year ago and same is true for other food items.
Inflation fell by 0.08% during the week ended on April 4, against 0.26 per cent in the previous week, but a number of food articles such as pulses, cereals, processed fish, common salt, tea, coffee, tobacco, soft drinks and liquor turned costly.
Prices of some food items like pulses have remained high because of poor harvest. Some odd categories like vegetables are seasonal. They have gone up by 25 per cent. Vegetable prices are quite volatile. They will correct themselves very quickly," Crisil Principal Economist D K Joshi said. Vegetables turned dearer by 24.9 per cent and oil cakes by 2.4 per cent on a weekly basis.
However, year-on-year processed fish was expensive by 42.75 per cent, liquor by 25.41 per cent, tea and coffee by 14.44 per cent, pulses by 9.12 per cent and cereals by 9.45 per cent.
As wholesale price-based inflation drew towards zero, RBI could face a difficult choice as to whether to tinker with policy rates or wait for some more time. The central bank is set to announce its annual monetary policy next week.
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