Inflation for December slowest in three years

Last Updated: Mon, Jan 14, 2013 08:40 hrs

New Delhi, Jan 14 (IANS) India's general inflation stood at 7.18 percent in December, the lowest since December 2009, owing to softening in power and fuel prices, government data showed Monday. The inflation rate for November was 7.24 percent.

The rate in increase in prices was recorded at 7.74 percent in the corresponding month of the previous year.

However, wholesale price-based food inflation increased to 11.16 percent in December this year from 0.79 percent recorded in the corresponding month of the previous year.

This was largely due to an exponential rise in the prices of onions, potatoes, wheat, rice and cereals, according to data released by the ministry of commerce and industry.

Onions became costlier by 69.24 percent, while potatoes became expensive by 89.68 percent and the price of wheat jumped by 23.23 percent. The price of rice was up 17.10 percent, prices of cereals were up 19.02 percent and pulses surged by 17.57 percent year-on-year.

Vegetables became expensive by 23.25 percent in wholesale market.

However, fruits' prices dipped a little at 5.76 percent from 8.78 percent a year-ago, while that of milk also slowed down to 5.825 percent from 11.02 percent reported in the corresponding month of 2011-12.

The cost of eggs, meat and fish also decelerated to 10.18 percent from 13.10 percent in the corresponding period of 2011-12.

Fuel and power inflation moderated to 9.38 percent in December as compared to 14.98 percent in the corresponding month of the last year.

Inflation of manufactured products declined to 5.04 percent in the period under review as compared to 7.64 percent in the corresponding month of previous year.

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