Food inflation fell lowest nearly in six years

India's annual food inflation fell sharply to 0.42 percent, its lowest in nearly six years at least,  for the week ended December 17 as vegetables, onion, potato, wheat and other essential commodities became cheaper, official data showed on Today.

In the previous week, annual food and fuel inflation stood at 1.81 percent and 15.24 percent, respectively.

The primary articles price index was up 2.70 percent, compared with an annual rise of 3.78 percent a week earlier.

India's headline inflation has stayed above 9 percent for a year, despite 13 rate increases by the central bank since March 2010.The headline inflation based on the wholesale price index was recorded at 9.11 percent in November, according to the latest official data.

The Reserve Bank of India kept policy rates on hold at its policy review early this month, sending a strong signal that its next move is likely to be an easing of monetary policy as risks to growth increase.

Food inflation came in single digit in the second week of November and has dropped consistently since then. It was recorded at 10.63 percent for the week ended Nov 5.

In the last one and half months food inflation has dropped sharply, giving the much needed respite to the economic policy makers who had been struggling for the last two years to control the price rise.

Finance Minister Pranab Mukherjee recently said that despite the recent moderation, overall inflation still remained at an unacceptable level.