India’s food inflation rate falls as monsoon boosts output
NEW DELHI: India's food inflation rate fell to the lowest level in one and a half years as monsoon rains raised crop output and moderated prices.
An index measuring wholesale prices of agricultural products including lentils, rice and vegetables compiled by the commerce ministry rose 8.6 percent in the week ended Nov. 20 from a year earlier, a report showed in New Delhi. It gained 10.15 percent the previous week.
" The general trend of decline in food prices is because of good agricultural production due to adequate monsoons," Dharmakirti Joshi, Mumbai-based chief economist at Crisil Ltd., the Indian unit of Standard & Poor's, said before the report.
The country received the most rainfall in three years in the June to September monsoon season, helping spur farm production and cap gains in food prices. -Reuters