Food inflation slides to 7.33%

The food inflation fell to 29 month lowest of 7.33 per cent for the week end July 16 from 7.58 per cent. This is the second consecutive fall recorded in the food inflation according to the data released by the government of India.

Does that mean, food items become cheaper in the country? No, there is fall in the prices of food items but the tag should be considered for long-run. The headline inflation stands at 9.44 per cent in June 2011 and it was 9.06 per cent in May 2011.

Adding insult to injuries, the government has hiked the price of petrol, diesel, kerosene and LPG so as, the Reserve Bank of India hiked the key interest rates for 11th time this week reviewing its monetary policy.

The complete impact has been shifted by the wholesales and bankers to their customers. However, the easing figures in the food inflation tough bit relaxing the feel of pinch of the people in the country.