Food inflation fell to an 18-month low of 7.7% during the week ended April 30 on the back of declining prices of pulses and vegetables, prompting the government to predict further moderation in prices due to record production of many food items. The government, however, warned that the price rise of non-food items would continue to pose problems in the days ahead. Food inflation, as measured by Wholesale Price Index (WPI), was 8.53% in the previous week. It had stood above 21% in the last week of April 2010. “The current trend in food inflation is welcome and we hope to see further moderation in food inflation in the coming weeks... However, there are concerns on price momentum in non-food articles,” FM Pranab Mukherjee said. India is estimated to have achieved record foodgrain production of 235.88 million tonnes in the 2010-11 crop year (July-June).
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