Inflation slips down to single digit

Controlling rising food prices has remained the hottest issue during this week8217;s parliamentary session . The Opposition parties want discussion on price rise under a rule that entails voting,which is not agreeable to the government.

Although the government is taking solace in inflations fall into single digits,todays report also shows that the price of pulses,milk and fruits rose by 21.23 per cent,19.03 per cent and 12.14 per cent,respectively in the last one year. The fall is basically due to the high base affect. Besides,seasonal fall in food inflation is normal. And we can expect further fall due to monsoon progress and rise in farm productivity, said Jayati Ghosh,professor of economics at the Jawaharlal Nehru University.

High inflation prompted RBI on July 27 to raise key policy rates up to 0.50 per cent the impact of which will be felt in the coming weeks. The fall in inflation for the week ended July 17 was mainly on account of decline in potato and onion prices. Potatoes became cheaper by over 46 per cent and onions by over 10 per cent.