Food prices have eased, but fuel price rise may still hurt

Mumbai: The latest weekly data on the wholesale price index (WPI) of primary articles and fuel released on Thursday shows a respite in food prices and a rise in fuel prices. “The rise in fuel prices will offset the easing of food inflation,” said Surabhi Mittal, economist with Icrier.

In the first week of March, the food price index rose 16.30% over last year, lower than the rise of 17.79% seen in February. But the annual inflation in the fuel and power group rose to 12.68%, against 10.19% in February, thanks to the increase in excise and customs duty on petrol and diesel.

“The supply of vegetables improved in March, bringing prices down,” said an official of the Agricultural Produce Market Committee (APMC) in Navi Mumbai. “Food inflation has possibly seen the worst,” said Siddhartha Sanyal, economist, Edelweiss.