Monsoon to ease food inflation pressure

Cheaper pulses and vegetables brought down food inflation marginally to 8.96 per cent for the week ended June 4 and the moderation may continue on the back of good monsoon prospects.

Food inflation, as measured by the Wholesale Price Index (WPI), was 9.01 per cent in the previous week, while it was over 21 per cent in the first week of June 2010.

During the week under review, prices of pulses went down by over 10 per cent year-on-year, while vegetables became cheaper by 1.39 per cent on an annual basis.

"Since the monsoon is expected to be normal, one can expect the food inflation to come down in the coming months," Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan said.